ADM to Streamline Organization, Reduce Global Workforce by 3 Percent
January 11 2012 - 12:00PM
Business Wire
Archer Daniels Midland Company (NYSE: ADM) announced today that
it will streamline its organizational structure, reducing its
global workforce to enhance the cost structure of the company.
Approximately 1,000 positions, primarily salaried, will be
eliminated, representing 3 percent of the company’s total workforce
worldwide. To help achieve this reduction, the company will offer a
voluntary early retirement incentive in the U.S. ADM expects that
these actions, in concert with other targeted cost reductions,
will, when fully implemented, reduce its annual pre-tax expenses by
more than $100 million.
“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,”
said Patricia Woertz, ADM chairman and chief executive officer.
“These actions will help us enhance our productivity and earnings
power.”
The company hopes to achieve a significant portion of the
position reductions through the voluntary retirement incentive and
will offer severance and outplacement assistance to other affected
employees.
In its fiscal 2012 third quarter, ADM expects to record a $50
million to $75 million pre-tax charge related to these actions. The
company expects to begin benefiting from the cost reduction actions
in the fourth quarter of fiscal 2012, with the full benefit
recognized by the end of third quarter fiscal 2013.
“These decisions do not reflect on the talent or dedication of
our ADM team,” Woertz said. “They reflect our confidence that we
can streamline our organization while maintaining our ability to
grow profitability, as well as our commitment to customers and to
operational excellence.”
About ADM
For more than a century, the people of Archer Daniels Midland
Company (NYSE: ADM) have transformed crops into products that serve
vital needs. Today, 30,000 ADM employees around the globe convert
oilseeds, corn, wheat and cocoa into products for food, animal
feed, industrial and energy uses. With more than 265 processing
plants, 400 crop procurement facilities, and the world’s premier
crop transportation network, ADM helps connect the harvest to the
home in more than 160 countries. For more information about ADM and
its products, visit www.adm.com.
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