By Jamie Martin
Deere & Co, a major player in the farm equipment manufacturing sector, has announced the layoff of nearly 600 workers across its facilities in Illinois and Iowa. This decision comes as the company grapples with a significant downturn in demand, influenced by declining crop prices and a reduction in farmer spending.
In its recent second-quarter earnings report, Deere disclosed a 15% revenue decline, marking the third consecutive quarter of year-over-year sales drops.
The company anticipates further declines in the second half of the fiscal year and is proactively reducing production and inventory levels to align with current market conditions.
The layoffs, effective August 30, will impact approximately 280 employees in Moline, Illinois, and another 310 across two Iowa facilities. These cuts represent about 14% of the workforce in the affected locations, which collectively house over 4,000 production and maintenance workers.
Deere’s struggles are mirrored in the broader agricultural sector, which is facing a sharp decline in net farm income, projected to drop by over 25% in 2024 according to the U.S. Department of Agriculture. Factors such as lower direct government payments and increased production costs are further straining farm incomes.
The company's global workforce exceeds 80,000, and despite these layoffs, Deere remains a significant employer in the agricultural sector. However, its share prices have seen a downturn, reflecting the industry’s ongoing challenges.
Additionally, Deere has plans to relocate its skid steer and track loader manufacturing from Dubuque, Iowa to Mexico by the end of 2026, aiming to optimize operations amidst these economic pressures.
Photo Credit: gettyimage-jamesbrey
Categories: National