ADM to make layoffs soon to cut costs

Reuters broke the news that grains trader Archer-Daniels Midland would soon start cutting its workforce as part of a global cost-cutting push. ADM confirmed the job cuts four days later as part of a $500-750 million cost savings initiative.

Why it matters

Corn, soybean and wheat prices hit four-year lows in 2024 as global stocks of the food staples ballooned to multiyear highs and whittled down profit margins for agribusinesses like ADM that make money from storing, processing and trading around the world. Rival agribusiness Cargill in December began laying off employees around the world in a drive to cut headcount by 5%.