ADM Expects $200-$300 Million in Cost Cuts for 2025: CEO Juan Luciano

ADM is targeting $200-300 million in cost cuts for 2025, having already reduced jobs and operations since announcing a $500-700 million cost-cutting plan. CEO Juan Luciano stated that the company is on track to achieve this goal and expects big improvements in its nutrition and commodity businesses. ADM is also seeing regulatory tailwinds and tax benefits for biofuels and decarbonization.

Archer-Daniels-Midland (ADM), a leading global agricultural commodities company, has embarked on a significant restructuring initiative aimed at boosting efficiency and profitability. The company is targeting $200-300 million in cost cuts for 2025, as part of a broader $500-700 million cost-cutting plan announced earlier. CEO Juan Luciano has stated that ADM is on track to achieve this goal, with expectations of substantial improvements in its nutrition and commodity businesses [1].

The restructuring involves the closure of plants in Bushnell, Illinois, and Kershaw, South Carolina, and the consolidation of operations at its Decatur, Illinois, facility. This strategic move is designed to centralize soy protein production and enhance operational efficiency. ADM expects to save $200-300 million annually through these measures [2]. The company is also planning to reduce its workforce by 600-700 positions, including 150 unfilled roles, to align its workforce with operational needs [3].

ADM's strategic plant closures and operational streamlining are part of a broader effort to simplify its portfolio and redirect capital toward innovation. The company's investment in the Decatur facility, a state-of-the-art soy protein production site, positions it to capitalize on the growing plant-based protein market, which is projected to reach $11.67 billion [4].

In addition to operational efficiencies, ADM is also benefiting from regulatory tailwinds and tax benefits for biofuels and decarbonization. These advantages further support the company's long-term growth strategy, despite the immediate drag on 2025 performance due to restructuring costs and lost revenue from shuttered plants.

ADM's strategy aligns with broader industry trends, where competitors in the agricultural sector are similarly prioritizing cost optimization amid persistent trade tensions and shifting consumer preferences. By streamlining operations, ADM is not only reducing vulnerability to cyclical downturns but also building a foundation for long-term resilience.

While the immediate impact on 2025 earnings is expected to be negative, the long-term benefits of streamlined supply chains and reduced overhead could bolster ADM’s competitive edge in a market where margins are increasingly squeezed by low crop prices and global supply gluts.

References:
[1] Archer-Daniels-Midland (ADM) to cease operations at Bushnell plant [https://www.reuters.com/business/archer-daniels-midland-cease-operations-bushnell-plant-2025-08-29/]
[2] ADM Restructures Global Soy Protein Network, Shuts Bushnell Facility [https://www.ainvest.com/news/adm-restructures-global-soy-protein-network-shuts-bushnell-facility-2508/]
[3] ADM Q2 Earnings Beat Estimates, Segment-Wise Declines [https://www.nasdaq.com/articles/adm-q2-earnings-beat-estimates-segment-wise-declines-act-headwinds]
[4] Archer-Daniels-Midland (NYSE:ADM) Stock Forecast & Price Target [https://www.marketbeat.com/stocks/NYSE/ADM/forecast/]