Deer lays off workers again

[ALLFARMER]

Deere announces factory workforce adjustments
MOLINE, Ill., Jan. 23, 2015 /PRNewswire/ -- Deere & Company (NYSE: DE) today announced it will make workforce adjustments at several factories in Iowa and Illinois. The actions include indefinite layoffs at five locations that build agricultural equipment as well as an extended inventory adjustment shutdown at another factory. In addition, Deere said it has added new jobs at two locations that build construction and forestry equipment.

Deere said the workforce adjustments reflect the economic forecast included in the company's November 2014 earnings report as the company continues to align the size of its manufacturing workforce to market demand for products.

The changes will place approximately 910 employees on indefinite layoff from facilities in Iowaand Illinois. Deere said the approximate number of layoffs at each location include 565 total at three locations in Waterloo, IA; 300 at the Des Moines Works in Ankeny, IA; and 45 employees at Harvester Works in East Moline, IL.

In addition, approximately 500 employees at Deere's Seeding and Cylinder facility in Moline will go on an extended inventory adjustment shutdown. That location typically has a seasonal inventory adjustment this time of year. For Seeding and Cylinder employees, the adjustment shutdown is expected to end in late summer.

The layoffs announced today are effective at different dates for each location. They begin in early February and most are effective in late March. Today's announcement is in addition to workforce adjustments announced in August.

Meanwhile, Deere has added 220 new jobs at construction and forestry factories in Iowa. These two factories - Dubuque Works and Davenport Works have each added 110 new jobs. Deere said nearly all of these positions have been filled by individuals who had been working for Deere at other locations but were laid off after the company announced workforce reductions at agricultural equipment factories in August.

[fjlip]

Perhaps they got the message...TOO much new and used machinery at dealers, auctions and listed for sale.
But prices would NOT be lowered to move them!

[SASKFARMER3]

Ah farmers this is how billion dollar companies keep profits up!
Quit building new! Or like grain farmers bigger yields!
Let workforce take a holliday!
Cut costs!
Not pay more for steel rubber paint electronics

Basically they got the message! Cut back!
Stupid farmers Nd advisors have to produce more to survive!
Ah yea that works!

[wheatsnowcanola]

Wow, I never thought our farm had that much power on the midwest economy. Decide not to trade equip for the first time in 10 years, and all hell breaks loose at the factories. Feel sorry for the employees, not so much for the company.

[Klause]

10 deere combines came up from the states just today on our way down... somebody has cash yet.

[SASKFARMER3]

No Klause lots ordered last summer arriving now! Their trades haven't arrived at dealers lots that's when the shit hits the fan!
If prices stay same or drop come fall new orders down!
Companies cut production farmers are told you have to produce more! No wonder why were paid shit all!

[farmaholic]

****in DUH. maybe grain producers could learn something from the business model. Don't produce yourself into the poor house or out of business. Who is going to take the first step back?

[mbratrud]

Dealers might have gotten lucky with softening dollar. I wouldn't hold your breath for any deals because the price of a new combine has gone up $50,000 in the last year on currency alone. That translates into higher prices on used eventually. I've noticed 1000 hour machines are listed for 50k more now than last year. Machines sitting on the lot for a year are worth more today than when traded.

[furrowtickler]

They are only worth what people are willing to pay for them .

[fjlip]

Lots of stuff on Kijiji, NOTHING moving.

[Oliver88]

Inventory on lots doesn't seem to be moving.
Prices will go down if net farm income and demand drops.

I suppose the new prices will be increased controlled by reducing the supply and the drop in our dollar. The Big operators that need to turn over machinery will be forced to pay.

[MBgrower]

Most farms heavily upgraded their entire lines the last 5 years. I'd say most could go several years without having to buy a single item.

[bucket]

That's my plan. Low houred equipment for a few years yet.

That and dealers have shitcanned trade deals. If I have to deal no trade it just gets stupid.

[fjlip]

Jay Dee took 23 one year old Case trades from ONE BTO, and they still all went to the March Ritchie sale in Swift. Ritchie sets your trade values MINUS dealer markup. SFA left for farmers.

[farmaholic]

The BTO likely has little equity in the iron anyway. Probably doesn't matter to him, keeps him in new iron and plays one brand off against the other. Isn't there really only two brands playing that game any way, JD & Case. With the current situation, this too will end. But I see your point how dumping large amounts of low hour iron on the market through auction sets prices.

Chances of that game being played here is zero, I'm insignificant in dealer eyes. But I did get a nice jacket with leather sleeves once :-)