ADM cuts jobs as part of $750 million cost-saving plan

What’s going on at ADM?

Archer-Daniels-Midland (ADM), one of the world’s largest agricultural processors, has announced plans to cut between 600 and 700 jobs globally. The layoffs, initially reported by Reuters, are part of a broader cost-cutting initiative aimed at saving up to $750 million over the next three to five years.

Details

ADM has been grappling with declining profits for the second consecutive year, following a trend seen in the agricultural commodities sector.

• Larger competitor Cargill has faced similar pressures due to a rebound in grain inventories, which has led to lower prices and reduced profitability for traders.
• ADM is dealing with an ongoing accounting investigation that has significantly affected its market value.
• The company is preparing for a potential third year of profit decline.

CEO’s statement

Adapting to Conditions: Board Chair and CEO Juan Luciano emphasized ADM’s need to adapt to shifting market conditions.

• “With softer market conditions and policy uncertainty around the world going into 2025, we are focused on improving our operational performance, accelerating cost savings, and simplifying our portfolio.”
• “As part of that effort, we are announcing targeted actions to deliver $500–750 million in cost savings over the next several years. This represents a continuation of ADM’s commitment to drive simplification and better align our resources to deliver long-term sustainable growth.”

Impact on Canadian staff

It remains unclear how the restructuring will affect ADM employees in Canada.

ADDITIONAL RESOURCES
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Next steps for ADM employees

If you’ve been affected by the layoffs at ADM, understanding your legal rights is crucial.

Non-unionized employees in Canada’s food production industry are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

ADM isn’t the only major employer to announce a workforce reduction to kick off 2025.

Big names, including Estée Lauder, Okta, Amazon, Stripe, BP, Microsoft, Meta, Hudson’s Bay, and Wayfair, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Salesforce to cut jobs at ‘Own’ following $2-billion acquisition
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• Where are layoffs happening in Canada?
• Pocket Employment Lawyer: Real-time insights on your rights

Lost your job? Contact us

If you’re affected by the latest round of layoffs at ADM, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.