Deere & Co., a major farm equipment manufacturer, is facing challenges due to declining demand, leading the company to lay off nearly 600 workers. The layoffs will affect production positions at two factories in Iowa and one in Moline, Illinois. This move comes after a more than 15% decline in revenue reported in the second quarter of the year. Company executives expect further sales declines and have lowered the full-year profit forecast for 2024.
The U.S. Department of Agriculture predicts a 25.5% decrease in net farm income for 2024, impacting farmers who are experiencing lower prices for their crops. These factors are contributing to the decrease in tractor and equipment purchases by farmers, leading to the need for production cuts at Deere.
Additionally, Deere announced plans to move its skid steer and track loader manufacturing from Iowa to Mexico by the end of 2026, further impacting local workers. The company has also implemented layoffs at its seeding and cylinder operations in Moline.
These recent layoffs represent about 14% of the production and maintenance jobs at the three affected facilities. Deere employs over 80,000 people worldwide. Deere’s shares have declined since the beginning of 2024 as the company navigates ongoing challenges in the agricultural equipment market.
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