Louis Dreyfus Company seeks to cut costs amid poor financial results — Reuters
Louis Dreyfus Company (LDC) has initiated a cost-cutting and reorganization drive in the face of difficulties confronting global trading houses, according to an internal memo, Reuters reports.
LDC confirmed the memo’s authenticity to Reuters in a statement, saying the company aimed to optimize its cost base in view of a challenging external environment.
"Global trade tensions and a deadly swine fever in Asia have weakened demand for soybeans and other grains, hurting results at trading firms such as LDC this year," the message reads.
As reported, the memo, which LDC said was sent to employees on Nov. 27, alludes to an announcement made by LDC’s Chairperson Margarita Louis-Dreyfus last week regarding the need to rise to the sector’s challenges.
The proposed reorganization follows a Nov. 18 management overhaul on the heels of poor financial results.
Previously reported that the European Bank for Reconstruction and Development (EBRD) provides up to USD 35 mln for LDC. The funds will be used to acquire up to 1,000 grain-hopper railcars, which will significantly facilitate grain-handling logistics for the company.