Four plants cutting production due to seasonal demand and inventory reductions
- Sites in Illinois, Iowa, Kansas
- “Remain globally competitive”
Deere and Co. stated that it must align its manufacturing workforce with market demand.
Deere & Company reported it will reduce employment by a total of 600 workers at four plants, describing the “indefinite layoff” as a response to current market conditions. The plants affected are John Deere Harvester Works, East Moline, IL; John Deere Seeding and Cylinder, Moline, IL; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS.
No other locations have been identified for layoffs. The agriculture equipment builder noted that workers had been notified of the layoffs.
The capacity adjustments represent a combination of seasonal and inventory adjustments. Deere’s plan to scale back production at Ankeny was announced last month, affecting most of the workforce there.
In addition to these cutbacks, the manufacturer initiated a seasonal shutdown at the John Deere Ottumwa Works, in Ottumwa, IA, affecting most of the manufacturing workforce there.
The decisions represent a consequential change from the OEM’s steady expansion over the past four years, when growing demand prompted capacity expansions and new plant construction.
In its 3Q 2014 earnings report recently Deere said it planned to reduce agricultural equipment production during the fourth quarter.
Deere said that to remain globally competitive it must align its manufacturing workforce with market demand.