Archer Daniels Midland to Lay Off Employees
One of America’s biggest food production and food processing companies, Archer Daniels Midland Company (ADM), has announced plans to lay off employees as it faces financial challenges. According to company spokesperson Colin McBean, the layoffs are part of the company’s efforts to streamline its business as the agribusiness industry becomes increasingly competitive.
“This is part of an effort to ensure we have the right resources in the right places and continue to be an agile and streamlined organization focused on growth,” said McBean.
The company has, however, not disclosed the total number of employees facing layoffs. It has also not revealed which job functions will be affected by the job cuts, or which locations will see the cuts. According to McBean, the company is not revealing the information out of respect for its employees: “Our priority during this process is the respect and care of our employees and, therefore, we are not sharing any additional details at this time.”
Under CEO Juan Luciano’s charge, the company has been taking steps to cut costs and improve its profitability. To that end, ADM has managed to cut $300.0 million in costs, and has found ways to shore up revenues. The company has earned $540.0 million from investments and has sold assets worth roughly $700.0 million. The layoffs are also part of the same fiscal efforts.
Archer Daniels Midland employs a global workforce of about 32,000 employees, with operations spanning across 160 countries. More than 12% of its workforce is employed in the city of Decatur, where more than 4,000 employees are working on its payroll.
ADM was formerly headquartered in Decatur, Illinois until it moved its headquarters to Chicago in 2014. In fact, ADM is the still the largest employer in Decatur, so mass layoffs at the company could significantly hurt the city’s economy.
In addition to its food processing business, Archer Daniels Midland trades commodities and provides food storage and transportation services. The latter business segments have particularly been facing challenges, such as competition from food suppliers around the world, and farmers increasing their own grain storage capacities.
“ADM planning layoffs,” Herald & Review, July 20, 2017.