By Ana Mano (Reuters) -Global grain merchant Archer-Daniels-Midland will soon start laying off employees as part of a global effort to cut costs as low crop prices erode profit, three people briefed on the matter told Reuters on Friday. Operations in the United States would be the focus of the cuts, one of the sources […]
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Exclusive-ADM to make layoffs soon to cut costs, sources say
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By Ana Mano
(Reuters) -Global grain merchant Archer-Daniels-Midland will soon start laying off employees as part of a global effort to cut costs as low crop prices erode profit, three people briefed on the matter told Reuters on Friday.
Operations in the United States would be the focus of the cuts, one of the sources said.
Corn, soybean and wheat prices hit four-year lows in 2024 as global stocks of the food staples ballooned to multiyear highs and whittled down profit margins for agribusinesses like ADM that make money from storing, processing and trading around the world.
ADM has previously said it is focused on controlling costs as the global grains glut and low prices dragged down profit, and warned that the current challenging commodities cycle would continue through 2025.
Rival agribusiness Cargill in December began laying off employees around the world in a drive to cut headcount by 5%.
It was unclear how many jobs would be affected at ADM. The company declined to comment on Friday.
The most heavily impacted region would be the United States, with the focus on operational areas including plants, ports and warehouses, one source said. Layoffs would also take place, however, across all regions and departments, the source added.
ADM executives were expected to address the restructuring after the company posts fourth quarter results on Tuesday, the source added.
(Reporting by Ana Mano in Sao Paulo and Chris Prentice in New York; Editing by Karl Plume, Simon Webb and Matthew Lewis)