ADM to Streamline Organization, Reduce Global Workforce by 3 Percent
Offering voluntary early retirement incentive
Changes should reduce annual costs by $100 million
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.
Archer Daniels Midland Company
Media Relations
Jessie
McKinney, 217-424-5413
media@adm.com
