ADM to Cut Hundreds of Jobs Due to Low ProfitsADM to Cut Hundreds of Jobs Due to Low Profits

ADM announced in its 2024 Q4 and full year earnings call it will cut approximately 600-700 jobs worldwide for cost-cutting measures.

Though net sales seems high, the company saw declines in profits for ag products and oilseed. Those declines, plus concerns about the market and uncertainty around trade policy, are the main reasons the company wants to cut costs.

For the fourth quarter ended December 31, 2024, earnings before income taxes were $667 million, down 9% versus Q4 2023. The full year showed earnings before income taxes $2.3 billion, down 47% versus the prior year. 

“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," said Board Chair and CEO Juan Luciano. "As part of that effort, we are announcing targeted actions to deliver $500 – $750 million in cost savings" over the next 3-5 years. This will help drive simplification and better align the company's resources to deliver long-term sustainable growth, he added.

ADM, based in Decatur, IL, expects to achieve the majority of the cost savings through improvement in manufacturing costs, reduction in purchased materials and services, and targeted workforce reduction. The company currently expects a targeted workforce reduction of approximately 600 - 700 roles globally in 2025.

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The human and animal nutrition company had a rough year in 2024:

Within the first quarter of 2025, several food & beverage companies have announced job cuts. Three poultry companies, Perdue Farms, Foster Farms, and Tyson Foods are closing plants and laying off hundreds as well. Cargill also just announced the closure of a plant that will affect 1,100 jobs. In its 2024 Earnings Report, Kellanova also discussed closure of 2 plants, one in the US and one in the UK.