(Bloomberg) — Archer-Daniels-Midland Co. said it will reduce its work force as the company expects profits to decline for a third straight year.
The Chicago-based crop trader plans to cut between 600 and 700 jobs globally this year, the company said in a statement Tuesday. That’s part of a plan to achieve as much as $750 million in cost savings over the next three to five years.
The move, which follows in the footsteps of larger rival Cargill Inc., comes after a second straight year of profit declines as a rebound in grain inventories weighed on prices and reduced traders’ negotiating power. ADM has also been faced with a crisis of its own, which includes an accounting investigation that has wiped billions of dollars in market value.
“With softer market conditions and policy uncertainty around the world going into 2025, we are focused on improving our operational performance, accelerating costs savings, and simplifying our portfolio,” Chief Executive Office Juan Luciano said in the statement.
ADM said it expects 2025 adjusted earnings per share in the range of $4 to $4.75 a share for 2025. The midpoint estimate is down from $4.74 a share in 2024 and also trails the average analyst projection of $4.66 a share.
Adjusted earnings were $1.14 a share for the three months ended December, down 16% from a year earlier. While that was in line with the average of analyst estimates compiled by Bloomberg, it’s the lowest fourth-quarter result since 2018.
ADM shares were down 1.1% in New York before regular trading hours.
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