John Deere recently confirmed that "salaried layoffs in the U.S. are expected to occur by the end of July," reports News 8 WQAD Davenport/Moline.
In a letter obtained by News 8, the company states that it's attempted to address issues of rising operational costs and declining market demand with various measures, including a hiring freeze, but additional actions need to be taken to remain competitive.
News 8 received the following response from John Deere regarding the letter:
"We can confirm Deere leadership recently communicated that rising operational costs and declining market demand requires enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future.
This includes:
- Aligning our workforce to our strategic priorities while simplifying the organization and reducing overlap and redundancy in roles and responsibilities
- Ensuring our factories are optimized for future products and to operate more efficiently across our global footprint
- Eliminating low- and non-value-added tasks, activities, and expenses
Salaried layoffs in the U.S. are expected to occur by the end of July. Meanwhile John Deere factories are consistently balancing the size of the production workforce with the needs of the individual factory to optimize the workforce at each facility.
Regarding potential upcoming announcements, we are not able to respond to any speculation. When we do have layoffs, we only confirm workforce adjustments once all impacted employees are notified."
On July 1, News 90 WAOW reports that nearly 600 works will be laid off. According to that report Deere said the production positions being cut are concentrated at two factories in Iowa and one in Moline, Ill., where 280 employees will be laid off effective Aug. 30.
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