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Deere & Co. Announces Job Cuts Amid Downturn in Farm Equipment Demand
In a bid to combat escalating costs brought about by a decline in farm equipment demand, Deere & Co. made a public announcement on Wednesday that there would be job cuts. These would affect an undisclosed number of staff across production and salaried roles.
Reason for Job Cuts
In an official statement, Deere & Co. pointed out that these layoffs were necessitated to eliminate “overlap and redundancy in roles and responsibilities.” The decision came after widespread reports of impending layoffs circulated in the media throughout the past week.
Profit Forecast and Sales Decline
This not-so-surprising news comes hot on the heels of the company cutting down its annual profit forecast for the second time. The company has also projected more significant drops in the sales of large agriculture equipment.
Impact on Agriculture Equipment Sellers
With crop prices dwindling, sellers of agriculture equipment find themselves in a tight spot with an overstock of unsold tractors and combines. To mitigate the situation, some have resorted to offering discounts and halting new orders.
Forecast on Farm Income
Pouring more salt into the wound, the U.S. Department of Agriculture has projected a 25.5% dip in farm income down to $116.1 billion this year, a significant drop from the income in 2023.
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