Archer Daniels Midland Co., the world’s largest grain processor, plans to cut about 1,000 jobs, or 3 percent of its workforce, to reduce costs.
The company will offer voluntary retirement incentives and severance to achieve a significant portion of the job cuts, ADM said today in a statement. When fully implemented, the work- force reduction and other cost-cutting measures will trim annual pretax expenses by more than $100 million, ADM said.
“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,” Patricia Woertz, chief executive officer of Decatur, Illinois-based ADM, said in the statement. “These actions will help us enhance our productivity and earnings power.”
ADM said it expects to record a $50 million to $75 million pretax charge related to these actions in the quarter ending in March, according to the statement.
ADM is among agricultural companies trimming costs and reducing headcount. Closely held Cargill Inc. yesterday reported an 88 percent drop in profit for the fiscal second quarter from a year earlier and in December said it planned to cut as much as 2,000 jobs, or 1.5 percent of its global workforce.
ADM rose 0.5 percent to $28.93 at 12:13 p.m. in New York. The shares have declined 10 percent in the 12 months through yesterday.
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