Archer Daniels Midland to eliminate 1,000 jobs

Agribusiness giant Archer Daniels Midland Co. announced today that it will cut 1,000 jobs worldwide, or 3 percent of its workforce, Reuters reported.

"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," Patricia Woertz, ADM chairman and chief executive officer, said, according to Reuters.

According to the Associated Press:

Corn and soybean prices have seesawed violently this year, hitting near-record levels only to plunge again in a matter of months. Such swings can quickly wipe out profits, so Archer Daniels Midland is looking to cut as much overhead costs as it can.

ADM estimates that the job cuts will shrink its annual expenses by $100 million, the AP reported.

The company said it will first cut employees via early retirement packages, the Wall Street Journal reported. US employees who are at least 57 years old and meet certain requirements may volunteer for the packages until the end of January, the AP reported. After that, ADM will start eliminating positions overseas, according to the Wall Street Journal.

Last month, rival Cargill Inc. announced it would cut costs by shedding 2,000 employees, or 1.5 percent of its workforce, Reuters reported. Cargill said Europe's debt crisis had depressed the earnings in its hedge fund division.

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