Boston, MA 08/18/2014 (wallstreetpr) – Deere & Company (NYSE:DE) will lay off almost 600 workers from its four locations. The layoff will be indefinite. It will cut down its manufacturing workforce at some of its agricultural equipment factories. The company is witnessing a decline in demand of its product forcing it to take down the crucial step.
The important measures
Deere & Company (NYSE:DE)is taking certain measures to bring down the downtime in its products. It is looking for the temporary layoffs for an indefinite time. It is also aiming at adjustments in terms of inventory and seasonal shutdowns. Deere has disclosed the changes while it announced its third quarter results on last Wednesday. The objective is to cut down the agricultural equipment production in the next quarter. The affected facilities which will see the layoff are Deere Harvester Works, John Deere Seeding and Cylinder, John Deere Des Moines Works and John Deere Coffeyville. As of now, only these locations will see the layoff in the near term.
The objective of layoff
Deer & Company (NYSE:DE) wants to cut down the size of its manufacturing workforce so that it can stay alive in the global competition. The workforce has to be aligned in respect of the market demand for its products. When the demand for the products was high, Deere has hired additional employees to meet the demand. It went for an extended shutdown of its Ankeny facility in the month of July. The other facility John Deere Ottumwa Works is also facing the seasonal shutdown.
The decline in agricultural prices
Deer & Company (NYSE:DE) announced its third quarter results, last week, where the earnings report had a touch of disappointment for investors. The main problem is coming from a decline in the agricultural prices. Almost 81% of its sales come from the agricultural and turf segment, and, therefore, any setback in the segment affects the performance of the company.
