Deere & Company announced that they will lay off about 460 employees from its Waterloo facility.
The reason for the indefinite layoff is to meet current market demand for its products, according to Director Ken Golden.
In mid-August Deere released its 2014 third quarter earnings, which dropped to $2.33 per share compared to $2.56 per share for the same period the previous year. Deere & Company net income also dropped from $2.73 billion in the first nine months of 2013 to $2.513 billion in the first nine months of 2014. Worldwide sales and revenue were also down. As a result, the company said it planned to produce less agricultural equipment to balance out the year.
“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.”
Deere also implemented seasonal shutdown affecting most workers at John Deere Ottumwa Works in Ottumwa, Iowa.
A spokesperson from the company stressed that the manufacturing workforce must meet market demand to remain competitive. Several hundred manufacturing employees were hired in recent years to meet factory demand for products in the Midwest.
The layoffs go into effect October 20, 2014.