ST. LOUIS (AP) — Agribusiness conglomerate Archer Daniels Midland Co. will cut 1,000 jobs company wide, the company's CEO announced Wednesday.
The majority of the positions will be salaried staff, CEO Patricia Woertz said in statement. The move will cut about 15 percent of the Decatur, Ill.-based company's corporate staff, and about 3 percent of its total workforce.
ADM employs 30,000 people worldwide.
Woertz said the company is cutting jobs to boost productivity and profits. The company does everything from processing crops to make food ingredients to shipping grain overseas.
The company said it will first offer employees a chance to voluntarily retire early if they are at least 57 years old and meet other requirements. Employees have until the end of January to take the retirement package. After that, Archer Daniels Midland will cut the remaining number of jobs needed to meet the 1,000 mark.
The last year has been a volatile one for agribusiness companies, with crop prices swinging wildly on global markets. Those price swings can hurt ADM because it locks in contracts to sell grains at set prices. When prices drop rapidly, as they did this summer, it can quickly wipe out the company's profit margins.