Archer Daniels Midland has followed its fellow US agribusiness giant Cargill and announced a swathe of job cuts to drive down costs.
The company said it needed to cut costs to stay competitive. Around 1,000 employees worldwide will be affected, ADM said. It hopes the cuts, as well as other “targeted cost reductions” will save it US$100m a year.
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“To ensure that we can continue to compete effectively in our global markets, we are taking actions to streamline our organization and achieve significant, sustained cost reductions,” ADM chairman and CEO Patricia Woertz said yesterday. “These actions will help us enhance our productivity and earnings power.”
In November, ADM reported mixed financial results for the first quarter of its financial year. Its net earnings were up by a third but its operating profit fell 6% as the company saw its oilseeds and corn operations come under pressure.
In ADM’s most recent financial year, which ended on 30 June, net income increased by more than 5%.
Last month, Cargill said it would cut 2,000 jobs around the world, citing the “continued weak global economy”.
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By GlobalDataOn Tuesday, the company reported a 88% drop in second-quarter profits, its worst quarterly performance in a decade.
