ADM plans to downsize staff in its Ag Services and Oilseeds unit

USA – Agribusiness giant ADM on March 26 confirmed that it is cutting an undisclosed number of jobs from its grain trading and oilseed processing division.

Jackie Anderson, senior director of external communications at ADM noted that these job cuts are part of the targeted workforce reduction and cost-saving measures announced earlier this year. ADM is committed to prioritizing employee care during this process and will communicate directly with those affected.

“ADM is a pillar of the entire global food system. It’s critical that we continuously drive the simplification of our organization and ensure our cost structure allows us to remain competitive so we can continue fulfilling this vital global role,” said Anderson.

Following its lowest fourth-quarter adjusted profit in six years, the Chicago-based company announced in February its plan to lay off 600 to 700 employees in 2025 and implement cost reductions of US$500M to US$700M over the next three to five years, including US$200M to US$300M in 2025.

A recent Securities and Exchange Commission (SEC) filing revealed that Juan Luciano, ADM’s chief executive officer, took a pay cut in 2024, reducing his salary from US$24.4M the previous year to US$21.6M.

Since the announcement in January 2024 about a voluntary investigation into accounting practices in its nutrition segment, ADM’s stock has declined significantly. This scandal led to the termination of former CFO Vikram Luthar and initiated two federal investigations.

While ADM’s internal investigation into accounting practices has concluded, the company continues to cooperate with the SEC and the Department of Justice on ongoing investigations.

As a result of the internal probe, ADM was forced to revise six years of financial statements early last year and restate some earnings in the fall of 2024.

ADM shares have fallen 32% since the accounting issues emerged, closing at US$46.05 per share on March 25.

In its most recent earnings report, released on February 5, ADM reported a net income of US$1.8B, or US$3.65 per share, for the year ending December 31, 2024.

This marks a 48% decrease from the previous year’s net income of US$3.48B, or US$6.43 per share. The company’s segment operating profit was US$4.21B in fiscal 2024, down 28% from US$5.87B in fiscal 2023.

With a global workforce of 38,000 employees, ADM is among the world’s top four grain traders, alongside Cargill, Bunge, and Louis Dreyfus.

Many agribusiness firms have faced significant economic challenges in recent years due to a sharp decline in commodity prices. In December, Cargill announced plans to lay off 5% of its global workforce, which amounts to about 8,000 employees.

 Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.