Farm and heavy equipment manufacturer Deere – of John Deere tractor fame – has announced that it will indefinitely layoff some 460 workers at its Waterloo, IA facility, effective as of October 20.

This latest round of layoffs comes just about a week after Deere revealed it would be doing the same at facilities in Ankeny, IA, Moline and East Moline, IL and Coffeyville, KS. All this, following and August 13 earnings announcement that showed sales falling by some 15 percent in the third quarter of this year.

In a statement, the company said that it "must match the size of its manufacturing workforce with market demand," to keep its edge in an increasingly global marketplace.

The layoffs fall in contrast to a relative boom in employment in recent years, when Deere says it took on "several hundred manufacturing employees" in the Midwest, to keep up with demand.
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Deere Announces Waterloo Layoffs

MOLINE, Illinois (August 22, 2014) – Deere & Company announced today that it will place approximately 460 employees who work in the company's Waterloo, Iowa operations on indefinite layoff in response to current market demand for its products. Deere said employees were informed today of the layoffs, which are effective October 20th.



"Layoffs are never easy because we understand the significant impact this action has on our employees, their families, and the community" said Dave DeVault, factory manager. "We very carefully assess our workforce requirements to ensure we make the best possible decision to respond to various market conditions."



When Deere announced third quarter earnings on August 13th, the company said it planned to reduce agricultural equipment production for the balance of the year.



Deere has emphasized that the company must match the size of its manufacturing workforce with market demand to remain globally competitive. Deere had hired several hundred manufacturing employees in recent years to meet increased demand for products manufactured in its Midwest U.S. factories.


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    • 1 Second Ago
  • 30 Comments
      LongDucDong
      • 3 Months Ago


      That sucks for the employees. Ive been in that position before, and its not fun. Best of luck to all of you!

      J
      • 3 Months Ago

      maybe if the tractors sold in the U.S. were made in the U.S.  Deere & Co would not need to lay people off!! 

      Think about it, 

        Brandon Kleczka
        • 3 Months Ago
        @J

        The frames and axles are made in the USA, in Wisconsin I should know I work there. We knew something was happening they have been cutting back orders for some time now and September looks worse

        erjhe
        • 3 Months Ago
        @J
        The ag market is much more than just tractors and it's not as simple as you make it out to be.
      Richard
      • 3 Months Ago

      yet another sign of a peak in  the current economic cycle...QE money drives art and classic cars to record prices, while the demand for tractors and raw materials falls off a cliff.  Equity prices high and interest rates already about as low as they can go.  Look out...

      rcavaretti
      • 3 Months Ago

      Did any upper level executives take pay cuts, you know, since sales are reduced?

        Christopher Pratt
        • 3 Months Ago
        @rcavaretti

        Executive pay cuts will not help.  Their issue is basic economics of Supply & Demand.

        This is particularly why Europe is always in the toilet, their government & unions refuse to work off the basic principles.

        As ole Thatcher would say..."Socialism is great until you run out of other peoples money".

          superlightv12
          • 3 Months Ago
          @Christopher Pratt

          Pay cuts for everyone is not really a socialist idea. In the U.S. and in Europe, those at the top, regardless of their incompetency, are never held responsible for their poor decisions, unless it's devastating to the company.  The people that really pay are the one's that do their job, the workers. In Japan, everyone takes the hit, and people are respected and value their jobs. In America, workers are considered a necessary resource to make money with. That's why there are unions. When American businesses stop the worship of executives and value workers, the whole country will benefit. Until then, the downward spiral will continue until there is finally anarchy. History shows this to be true.

          tump
          • 3 Months Ago
          @Christopher Pratt

          And Reagan put everything on a very large credit card which was paid by everybody afterwards, so he used other peoples' money just as well.

          SquareFour
          • 3 Months Ago
          @Christopher Pratt
          Speaking of "basic principles" of economics, probably the most basic tenet is to not shit where you eat, yet that's exactly what we see happening the world over (in more ways than one). From a purely economic standpoint, everyone's in this game to sell a product/service, but you can't sell stuff to people who can't afford to buy it. 
          We've created a vicious circle where we cut costs by cutting pay/labor because it's the easiest cost to control, but by doing so we're also cutting our customer bases. We've been bridging the wealth gap with credit, and consumers have been using that to maintain the horseshat lifestyle they've been sold while the creditors have been getting their slice off middle-class' back, but we've reached a breaking point where the debt load is too heavy, the wages too low and the price too high.
          Bottom line, wealth trickles up from the masses. Unless the guys at the top reinvest that capital into their businesses, letting some of it rain back down in the form of more job opportunities and higher wages, people stop buying and the whole system grinds to a stop.
          hokkaido76
          • 3 Months Ago
          @Christopher Pratt

          Thatcher was a idiot and a reagan butt kisser. Glad she's gone.

          "Trickle-down economics is great until people are too poor to buy the crap that you make."

        Hazdaz
        • 3 Months Ago
        @rcavaretti

        They probably got bonuses. 

      Bufford Buchanan
      • 3 Months Ago

      I worked for Caterpillar and just left to go to Cummins.  Rumor at both places is that Deere's EPA T4F engines are not performing.  They are having quality issues and are not hitting emissions targets.  This kills their domestic market plans. Rumors are that they are going to use Cummins' SCR emissions system and some larger Cummins engines in the bigger equipment until they can get their stuff together.  Not to mention that Case and CAT have been digging deeper into Deere's agricultural equipment market share year after year for the past decade or so.  I hope Deere pulls it together.  They make great products.  They just planned poorly for the new emissions laws when everyone else took them seriously and hit the marks.

      Ken
      • 3 Months Ago

      KA?  You mean KS.

      AnandRS
      • 3 Months Ago

      North American manufacturing is being killed due to the greed of few, dodgy and cheap products being imported into North America

        mlevere1988
        • 3 Months Ago
        @AnandRS

        Ah, never mind.  Don't even want to get caught up in the argument.

      That Guy
      • 3 Months Ago

      What the hell is this FarmBlog now?

      Alfonso T. Alvarez
      • 3 Months Ago

      You know what's really funny??


      Basically no one who is commenting on here has even the remotest clue as to why these layoffs occurred!!

      Here is a free lesson in how a multinational company works:


      Deere has had huge growth from markets outside of the US for a lot of years.

      They have been exporting every increasing numbers of their product to other markets as this growth has occurred.

      The global economy is starting to contract in their market - primarily farm equipment - see the BRIC countries and SE Asia.

      The decline in exports is what is causing the cutbacks in their production in the  US.

      However, Deere has been making huge investments in their product line to make them more competitive in the global marketplace, which will enable them to gain market share once again when their export markets start to expand again.

      Hence, the senior management, who rely on overall profitability to achieve their bonuses, have put the necessary investment into the company to  provide for future growth even during the current decline in overall sales.


        Daniel D
        • 3 Months Ago
        @Alfonso T. Alvarez

        Oh and the workers welfare despite their loyalty is irrelevant and does not need to be accommodated in any way.

      OptimusPrimeRib
      • 3 Months Ago

      Too bad there isn't a law stating that execs and board members have to take a major salary cut and forgo bonuses and stock options before they layoff people. It's funny how they seem to always get a fat raise and bonuses despite the drop in sales.

        That Guy
        • 3 Months Ago
        @OptimusPrimeRib

        Wow, so much ignorance.

          OptimusPrimeRib
          • 3 Months Ago
          @That Guy

          You mean the ignorance that the execs at Bank of America had when they were gonna sue because they didn't get weren't gonna get their bonuses despite having massive layoffs and receiving a assisted government bailout? What were those rich execs gonna do? Maybe they could sell their 3rd home in Malibu but that would be asking top much. But foreclosing that one home and employee had was okay. 

      AnandRS
      • 3 Months Ago

      The greed and slow demand is killing the great North American anufacturing

      dude
      • 3 Months Ago

      how else is the CEO going to pay for the family helicopter and becky sweet 16 ferrari!?

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