Archer Daniels Midland Co. (NYSE:ADM) said Wednesday that it plans to streamline its business and slash 1,000 salaried jobs in a move to enhance productivity and earnings power.
The company, which converts oilseeds into products for food, animal feed and energy uses, said the job cuts reflect about three percent of its total workforce, or 15 percent of its corporate staff.
Archer also said that to help achieve the reduction, it will offer an incentive for U.S. workers to voluntarily retire early, if they are at least 57 or older and meet other requirements.
The company said it hopes the move, in combination with other cost reduction measures, will cut its annual pre-tax expenses by more than $100 million, when fully implemented.
"To ensure we can continue to compete effectively in our global markets, we are taking actions to streamline our organization and achieve significant sustained cost reductions,” chief executive Patricia Woertz said in a statement.
The company expects to take a pre-tax charge of between $50 and $75 million during the third quarter related to the job cuts.
In addition, the company said it expects to benefit from its cost reduction actions in the fourth quarter, with the full benefit seen by the end of third quarter of fiscal 2013.
Archer Daniels Midland employs 30,000 workers globally. It runs more than 265 processing plants and 400 crop procurement sites.
Shares of the conglomerate rose 33 cents, or 1.15 percent, climbing to $29.11 each today in New York.