John Deere Planning Big…Possibly Record Layoffs
John Deere has verbally notified employees of big to very big (possibly record) layoffs coming.
Here’s what’s interesting about this…
John Deere is still profitable and generally considered to be a well run company, the best in a critical area (large scale agriculture).
The problem is sales. The internal numbers they’ve run through are as I was told "mind numbingly bad". They are still wrestling with the magnitude of change/slowdown. Impression I was left with was unprecedented and off the charts for planning layoffs.
So, without a massive reversal what will happen to most other companies soon? Future employment?
This came out yesterday…looks like more than a rumor:
PITTSBURGH (AP) — Deere & Co. said Tuesday it will temporarily lay off most production workers at an Iowa plant as the global economic crisis weakens demand for its products.
The world’s largest maker of farm machinery said 494 workers at its John Deere Ottumwa Works will be laid off indefinitely starting June 29. The factory’s remaining 195 workers will be laid off periodically over the next several months, Deere said.
The Moline, Illinois-based company has coped with diminishing demand in recent months as the sagging world economy and lower commodity prices undermine demand for its products. In May, Deere reported a 38 percent decline in quarterly profit as farmers and other customers cut spending on tractors, mowers and construction equipment. It also slashed its profit forecast.