Archer-Daniels-Midland Company (ADM) reported lower earnings in the fourth quarter of 2024, citing softer market conditions and policy uncertainty. The company also revealed plans to implement cost-saving measures of £410 million to £615 million, which will include a workforce reduction.
For Q4 2024, ADM reported earnings before income taxes (EBIT) of £546 million, a 9% decline compared to the same quarter in 2023. CEO Juan Luciano attributed the drop to challenging market conditions and global policy uncertainty heading into 2025.
As part of its strategy to improve operational performance and reduce costs, ADM plans to achieve £410 million to £615 million in savings over the next several years. The savings will primarily come from reductions in manufacturing costs, purchased materials, services, and a planned global workforce reduction of approximately 600-700 roles in 2025. Luciano stated that these actions are part of a broader effort to simplify the company’s operations and better align resources for long-term growth.
The company’s Crushing subsegment saw a 46% decline in operating profit due to factors such as higher manufacturing costs and biofuel and trade policy uncertainty, particularly in North America. However, the Animal Nutrition subsegment experienced a rise in operating profit to £21 million, driven by cost optimisation and lower input costs.
ADM’s cost-saving measures align with broader industry trends, as other companies such as Cargill and Evonik have also announced significant workforce reductions in response to market challenges.
