John Deere, the American manufacturer of agricultural machinery and equipment, recently informed its employees via email about the need to reduce its workforce. Due to a slowdown in demand for new agricultural equipment and a significant increase in operational costs, the company is considering eliminating redundant positions. Media reports indicate that the Waterloo facility will be letting go of up to 192 employees by 21 June, while the Iowa facility plans to lay off 123 employees by 6 June.
Additionally, 103 employees have applied for early retirement. In April and early May, 90 employees were already laid off at the Iowa facility, and 368 were let go at the Waterloo and Des Moines facilities in April.
The company’s net sales of precision agriculture equipment have dropped by over $6 billion compared to the same period last year, leading to reduced production. It is anticipated that farm income will decrease by 25% in 2024, causing farmers to be cautious about their spending. Sales of larger products, like high horsepower tractors, have been particularly impacted. Rising oil prices, uncertain political situations, and high interest rates are further complicating the company’s challenges, making it difficult for farmers to afford new equipment.
