By Ana Mano and Chris Prentice
SAO PAULO (Reuters) -U.S. grains merchant Archer-Daniels-Midland is making a fresh wave of job cuts this week at its largest unit, the grain trading and oilseed processing division, according to three sources briefed on the matter.
Chicago-based ADM said in February it would cut up to 700 jobs and reduce costs by $500 million to $750 million over the next three to five years, after posting its lowest fourth-quarter adjusted profit in six years. The job cuts would represent about 1.7% of the company’s global workforce.
ADM said in a statement it was critical to ensure its cost structure allows the firm to remain globally competitive.
“The actions the company is taking are part of the targeted workforce reduction and cost saving actions we announced earlier this year,” it said.
The statement did not mention any specific locations, divisions or targets.
Reuters could not confirm the number of job cuts this week.
The new wave of cuts began at ADM’s Swiss office, which is its European headquarters, one source said, speaking on condition of anonymity.
The cuts would be disruptive to ADM’s agricultural services and oilseeds business, said another source, as employees, including experienced traders, worried over who might be targeted next. That unit, ADM’s largest, houses the company’s global crop trading, transportation and storage, and oilseed processing operations.
The division appeared to be the focus for this round of cuts, rather than ADM’s nutrition unit, one of the sources added.
Each region where ADM operates was given specific cost-cutting targets by Chief Financial Officer Monish Patolawala, according to one of the sources.
ADM tapped Patolawala for the job last July as it dealt with multiple U.S. investigations, including a criminal one, related to accounting irregularities.
(Reporting by Ana Mano in Sao Paulo and Chris Prentice in New York; Additional reporting by Karl Plume in Chicago; Editing by Emily Schmall and Rod Nickel)
