Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Deere to lay off 600 employees

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
Chicago Tribune
Published:
Deere & Co., the world’s largest maker of farm equipment, said Friday it will lay off 600 workers at four Midwest agricultural-equipment factories, including two in Illinois, because of declining demand for its products.
The plants are in Moline and East Moline; Ankeny, Iowa; and Coffeyville, Kansas, said Deere, which is based in Moline.
Illinois was hardest hit, with 425 layoffs at the East Moline plant, which employs 1,730. Those layoffs begin Oct. 20, a spokesman said. The Moline plant will have 35 layoffs beginning Aug. 25. It employs 710. The company has some 35,000 U.S. employees.
Job reductions were signaled earlier this week when Deere cut its earnings forecast for the year and reported that fiscal third-quarter profit fell 15 percent on weaker farm equipment sales. Officials said then that the company would scale back production to be in line with demand for agricultural products.
“It’s just a reflection that our workforce has to flex with how much we’re selling,” said Deere spokesman Ken Golden. “We had added several hundred jobs in recent years in these factories because of increased demand.”
Deere also said Friday it is implementing seasonal and inventory adjustment shutdowns and temporary layoffs at several of the affected factories. Among those shutdowns is the East Moline plant, which will be closed from Sept. 29 to Nov. 3, a few weeks longer than normal, Golden said. The Moline plant has no similar shutdown.
Employees have been informed at the affected facilities. No other locations were included in Friday’s layoff announcement.
In July, Deere informed employees at its Ankeny facility of an extended shutdown affecting most manufacturing employees at that location. Friday’s announcement places some of the employees at that facility on indefinite layoff. Deere also has implemented a seasonal shutdown affecting most of the manufacturing workforce at the John Deere Ottumwa Works in Ottumwa, Iowa.
The company said this week that while the agricultural economy remains in a “relative healthy state,” falling commodity prices cooled demand for large farm equipment. It said worldwide sales of equipment declined by 6 percent for its fiscal third quarter, with the biggest drops in the U.S. and Canada.
Deere said industry sales of agricultural and farm machinery are expected to slip 10 percent for the year in the U.S. and Canada, stay flat in Asia and fall 5 percent in the European Union. Sales of tractors and combines are expected to fall 15 percent in South America.
As a result, Deere said it expects worldwide sales of its agriculture and turf equipment to decline 10 percent, versus 7 percent in its previous outlook.
Story tags » JobsFarms

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup