Struggling with falling demand for farm equipment, Deere & Co. announces nearly 600 layoffs
Deere is laying off nearly 600 workers as the farm equipment manufacturer deals with declining demand
Deere & Co. is laying off nearly 600 workers as the farm equipment manufacturer deals with declining demand.
Deere confirmed Monday that the production positions being cut are concentrated at two factories in Iowa and one at its home base in Moline, Illinois, where 280 employees will be laid off effective Aug. 30. A combined 310 workers will be let go at the Iowa locations.
In its second-quarter earnings release in May, Deere reported a more than 15% decline in revenue, the third straight quarter of year-over-year sales declines. Company executives said at the time that they expected further sales declines in the second half of the fiscal year and said it would continue to “take proactive steps to reduce production and inventory.”
Deere & Co. turned in a quarterly profit of $2.37 billion, down from $2.86 billion in the same period the previous year, and lowered its full-year 2024 profit forecast for a second time as farmers continued to buy fewer tractors and other equipment due to declining prices for their crops.
The U.S. Department of Agriculture anticipates that 2024 net farm income, which is a broad measure of profits, will total $116.1 billion. That’s down 25.5% from a year earlier. Adjusting for inflation, net farm income is expected to be down 27.1% this year as farmers contend with lower prices for soybeans and corn. The USDA said that lower direct government payments and increased production costs are also weighing on farmers.
The most recent layoffs amount to about 14% of the more than 4,000 production and maintenance jobs at the three facilities. Deere employs more than 80,000 people worldwide.
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