MOLINE - John Deere (IW 500/34) announced layoffs for February affecting plants in Illinois and Iowa.
The world’s largest maker of farm equipment said cuts are coming for more than 900 workers, or 3% of its workforce in the U.S. and Canada.
The company is blaming the low price of grain for the drop in sales of agriculture equipment.
Most of the cuts will hit plants in Iowa, with 565 layoffs coming to Waterloo and another 300 in Ankeny. Another 35 employees will be let go at the Moline, Ill. location.
Also at the Moline plant, Deere said it will furlough 500 workers in what it’s calling an “extended inventory adjustment shutdown” set to happen at the end of summer.
The cuts aren’t unexpected. The company announced at least 600 layoffs back in August.
The most recent cutbacks likely won’t be the last. Farmers are holding off on buying new and pricey heavy equipment until prices head up again.
Strong corn and soy harvests have driven prices down leaving little cash for new investment.
John Deere employs about 60,000 people with nearly 30,000 in the U.S. and Canada.
