ADM reorganizes operations and cuts management jobs

CHICAGO (Reuters) - Archer Daniels Midland Co (ADM.N), the largest U.S. food processor and ethanol maker, said on Wednesday it is reorganizing under a single operations group and eliminating some managerial positions.

The company plans to take a charge to cover the costs of the reorganization and will announce the amount of the charge once the reorganization is complete by the end of the quarter, a spokesman said.

ADM expects the ongoing savings from the plan to exceed the charge, he said.

About 30 people will have new reporting relationships or increased responsibilities, the company said.

A limited number of managerial posts will be eliminated, the company said. The changes, which will occur in every region around the world, mostly affect employees at the management level, the spokesman said.

The moves come six months after Chief Executive and President Patricia Woertz took on the additional role of chairman.

ADM said it should become more efficient, with clearer lines of responsibility. The company will have one group responsible for origination -- or the receiving and handling of commodities such as grain -- merchandising, processing and marketing.

Among the changes, John Rice will lead the new Commercial & Production division, responsible for global origination, merchandising, processing and marketing across the company's major businesses. Rice, who joined ADM in 1976, had been an executive vice president with responsibility for global marketing and risk management.

David Smith, company secretary and general counsel, will also be responsible for Natural Health and Nutrition, Aviation and Internal Audit.

Steve Mills, who became senior vice president of strategic planning in 2006, will assume additional responsibility for specialty food ingredients, ADM investor services and Hickory Point Bank.

Woertz became CEO and president in April 2006 and added the chairman job in early February.

Shares of ADM were down 8 cents at $32.27 after rising as high as $32.68 in morning trading on the New York Stock Exchange.

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(Reporting by Jessica Wohl, editing by Dave Zimmerman/Jeffrey Benkoe)