Deere plans layoffs in Davenport, Waterloo
Decisions be based on seniority for indefinite period
George C. Ford
More employee layoffs were announced Monday by Deere & Co., which has reduced its global workforce by 10,000 since 2013.
The world’s largest farm equipment manufacturer said 115 employees will be furloughed at its Waterloo Works facility and 30 employees at its Davenport plant. Deere spokesman Ken Golden said the layoffs will be based on seniority and will be for an indefinite period.
About 663 employees remain on indefinite layoff at Deere’s Waterloo Works following previous workforce reductions in the fall 2014 and spring 2015.
On July 22, Moline, Ill-based Deere said 140 production workers at its John Deere Harvester plant in East Moline, Ill., have been notified that they will be on indefinite layoff effective Sept. 6. The plant employs approximately 1,050 production employees.
Deere said it continues to adjust the size of its production workforce to meet declining demand for products manufactured at each of its factories. The company, which also produces construction, forestry and landscaping equipment, has projected a 8 percent drop in worldwide sales for the 2016 fiscal year.
Prices for corn and soybeans grown in Iowa and surrounding states have dropped sharply from record highs. That has squeezed farm income and dramatically reduced the sales of combines. planters, row crop tractors and other farm implements.
Deere on Friday reported a much smaller-than-expected drop in quarterly profit, saying cost controls including employee layoffs helped it weather a global agricultural recession and difficult construction market.
About 2,000 employees in its Midwestern factories have been on indefinite layoff since 2014.