ADM plans to cut costs by $200-300 mln in 2025

Grain trader Archer-Daniels-Midland’s (ADM) management said on Wednesday that the company plans to cut costs by between $200 million and $300 million this year.

ADM has been cutting jobs and scaling up some operations since it announced plans in February to cut costs by $500 million to $700 million and make a series of layoffs over the next three to five years, particularly in its oilseed crushing business.

The company warned that its adjusted profit this year will fall to its lowest in five years as U.S. trade turmoil and uncertainty over biofuels policy have slowed sales and squeezed trading and crushing margins.

“From a capital allocation perspective, we remain focused on deploying capital toward productivity improvements, cost reductions or internal innovation,” it said in a statement.

ADM is looking to improve its food and raw materials businesses after it was announced that the company was gradually phasing out its trading activities in China.