Anthony Chan, former chief economist at JPMorgan Chase & Co., said lowering prices will be a “first-day priority” even though he is already president of Barney & Co. Responding to Kamala Harris.
Cargill, the largest private company in the United States, is cutting jobs around the world as it faces pressure from falling commodity prices.
The Minnesota-based company, one of the world’s largest agricultural traders with global operations, told Fox Business that about 5% of its employees will be laid off. This equates to approximately 8,000 jobs.
Cargill said the job cuts are part of a “long-term strategy” the 160-year-old company laid out earlier this year.
“Looking to the future, we have clear plans to evolve and strengthen our portfolio in order to take advantage of the exciting trends in front of us, maximize our competitive advantage, and above all continue to deliver for our customers. ,” the company said in a statement.
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View of the Cargill Grain Elevator at the Port of Albany on Tuesday, August 26, 2014 in Albany, New York. (Paul Buckowski/Albany Times Union via Getty Images)/Getty Images)
This comes as prices for commodity crops such as wheat and soybeans have weakened, threatening the industry’s profit margins.
According to the World Bank, commodity prices in the third quarter of 2024 fell by 4% compared to the previous quarter. Sales decreased in most categories except fertilizers and precious metals. The World Bank predicts that commodity prices will fall by 5% in 2025 and 2% in 2026.
The World Bank’s composite commodity price index is expected to reach its lowest level since 2020.
The Fed’s preferred inflation measure showed accelerated price increases in October.
“As the world changes around us, we are committed to transforming faster to deliver for our customers and achieve our purpose of feeding the world,” Cargill said. , adding, “Strengthening Cargill’s impact requires realigning our people and resources,” in line with our strategy. ”
The funding company’s flag stands alongside the Ukrainian and U.S. flags at a grain terminal operated by Cargill and MV Cargo at the port of Yuzhny in Yuzhny, Ukraine, Tuesday, Nov. 13, 2018. (Vincent Mundy/Bloomberg via Getty Images/Getty Images)
As the company is privately held, it does not publish quarterly financial results. But the company said in a memo seen by Reuters in August that less than a third of its businesses met revenue targets in the previous fiscal year.
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The company said it would make structural changes after failing to meet profit targets. This includes a condensing operation from five to three units.
CEO Brian Sykes said in an internal memo that the company will hold a meeting on Dec. 9 to share further information about its turnaround plan.
Reuters contributed to this report.
