A surprising company is currently planning to lay off hundreds of workers in Illinois by the end of the summer because the market for its products is contracting out.
The largest tractor and crop harvester manufacturer in the world, John Deere, has announced a large wave of layoffs that would affect about 610 production employees at its facilities in Illinois and Iowa.
The corporation made this option in declining market demand for its products and growing operational expenditures.
The business is laying off about 280 employees from its East Moline, Illinois, plant.
Approximately 100 production workers at the Dubuque, Iowa plant will also lose their employment, while 230 employees at the Davenport, Iowa factory will be put off.
These layoffs come after John Deere made many similar announcements earlier in the year.
About 200 workers at the Waterloo Works plant were told in May that they would soon lose their jobs; these workers were added to the 308 put off at the same location in late April.
Image – Mint
Moreover, 150 workers at the Ankeny facility risked layoffs in March.
Even though John Deere reported $10.166 billion in earnings last year, the company has stressed the need for reforms across the board to adjust to the difficult economic climate.
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According to the corporation, “We can confirm Deere leadership recently communicated that enterprise-wide changes in how work gets done are required to achieve our goals and best position the company for the future.” This is in response to diminishing market demand and rising operating expenses.
An employee of John Deere for a long time at the East Moline facility, Harvester Works, blamed the most recent news on greed.
“It appears that there are increasing layoffs every day, and it’s creating uncertainty everywhere,” the unnamed employee told The Guardian.
“Growth is the only motivation behind Deere’s actions.”
As of Friday night, Deere & Co.’s market capitalization was approximately $102.81 billion.
The business said in the middle of May that its net sales and revenues for the first two quarters of the year had reached $27.42 billion.
During the same period, its net income was $4.121 billion.
The company recently predicted sharper decreases in sales of major agricultural equipment and lowered its annual profit prediction for the second time.
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