Global agribusiness giant ADM is set to cut an undisclosed number of jobs in its Ag Services and Oilseeds unit, according to three sources quoted in a Reuters report.
In February, ADM said it would cut up to 700 jobs – around 1.7% of the company’s global workforce – and reduce costs by US$500M-US$750M over the next three to five years, after posting its lowest fourth quarter adjusted profit in six years.
The move was critical to ensure its cost structure allowed the company to remain globally competitive, ADM was quoted as saying in a statement.
“The actions the company is taking are part of the targeted workforce reduction and cost saving actions we announced earlier this year,” it said.
The company’s statement did not mention any specific locations, divisions or targets, the 26 March report said.
At the time of the report, Reuters said it could not confirm the number of job cuts.
According to one source, the new wave of cuts began at ADM’s Swiss office, which is its European headquarters.
The cuts would be disruptive to ADM’s agricultural services and oilseeds business, as employees, including experienced traders, would be concerned over who might be targeted next, another source was quoted as saying.
The Ag Services and Oilseeds unit is ADM’s largest division and comprises the company’s global crop trading, oilseed processing, and transportation and storage operations.
The division appeared to be the focus for the latest round of cuts, rather than ADM’s nutrition unit, one of the sources added.
Each region where ADM operates has been given specific cost-cutting targets by chief financial officer Monish Patolawala, according to one of the sources.
Responding to an interview request from World Grain, Jackie Anderson, senior director of external communications at ADM, was quoted as saying in a written statement: “It’s critical that we continuously drive the simplification of our organisation and ensure our cost structure allows us to remain competitive so we can continue fulfilling this vital global role. These actions are part of the targeted workforce reduction and cost saving actions we announced earlier this year.”
ADM employs 38,000 workers worldwide and is among the world’s top four grain traders along with Cargill, Bunge Global and Louis Dreyfus Company, according to the World Grain report.
Many agribusiness companies had faced strong economic headwinds over the past few years as commodity prices had fallen sharply, the report said.
In December, Cargill had announced plans to cut its global workforce by 5%, or approximately 8,000 employees, World Grain wrote.
