Cargill missed financial goals this year and will be restructuring to "streamline and simplify" amid a downturn in global commodity prices, Reuters reports.

The Minnetonka-based agribusiness, the largest privately held company in the U.S., will have three divisions instead of five starting in September: Food, Ag & Trading and Specialized Portfolio.

The prices of many agricultural goods have reached their lowest level since the end of 2020, according to World Bank data, which started with a steep decline in 2023.

"Our recent performance and the market trends unfolding in front of us have proven a clear and pressing case for change," CEO Brian Sikes said in an internal company email obtained by Reuters.

The company did not address specifics of the plan but said in a statement the new strategy will be "carrying forward the values and core strengths that have defined our success from the beginning."

"As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers," Cargill said in a statement to the Star Tribune.

The restructuring marks one of Sikes' first major moves since becoming CEO in January 2023. He has already taken a new direction with the company's digital strategy, opening a tech hub in Georgia and laying off about 200 IT workers globally.

Fellow Minnesota-based agribusiness CHS has also seen revenue and earnings fall amid lackluster prices for grains and oilseeds shipped around the world and tighter profit margins.

"We currently expect the moderation of margins for energy and agricultural commodities to persist during the remainder of fiscal 2024 and into fiscal 2025, which could negatively impact our profitability," CHS wrote in a securities filing last month.

Cargill's new segments will be headed by company veterans, according to Reuters. Jon Nash will lead the Food division; Roger Watchorn will head Ag & Trading; and David Webster was tapped for the Specialized Portfolio group.

The internal memo promised the transformation would help "reduce our costs and optimize our capital investments" and noted several executives would retire, though it made no direct mention of layoffs.

More financial details should be revealed when the company issues its annual report, expected this month. Cargill reported $177 billion in revenue last year.