ADM Stops Domestic Trading In China, Cuts Jobs In Shanghai

Global grain merchant Archer-Daniels-Midland (ADM) has begun shutting down its domestic trading operations in China and laying off staff in its largest business segment as part of a global cost-cutting initiative, the company announced.

While ADM did not disclose the number of layoffs, a source familiar with the matter said 40 to 50 employees would be affected, leaving just around 10 staff in Shanghai. I Photo: ADM

The report, by Ella Cao, Karl Plume, and Ana Mano for Reuters, was published.

The move is aimed at helping ADM “remain agile in a challenging environment,” as it continues to grapple with the fallout from an accounting scandal that emerged last year.

While ADM did not disclose the number of layoffs, a source familiar with the matter said 40 to 50 employees would be affected, leaving just around 10 staff in Shanghai.

“The entire Ag Services and Oilseeds team in China has essentially been let go,” the source noted.

Another source added that approximately 30 employees at ADM’s Toepfer Shanghai subsidiary would be laid off starting this week. The job cuts are part of a broader global restructuring announced earlier this year.

ADM's Agricultural Services and Oilseeds division saw its operating profit fall 40% last year due to lower crop prices, inflation-hit consumer demand, and weak processing margins.