Deere & Co. says it will take a larger-than-expected fourth-quarter charge of $100 million after 800 salaried employees took voluntary buyouts.
Deere said it had expected a charge of about $50 million for the program, which it initially announced in April.
The farm equipment maker expects the cuts will save $75 million in the first year.
In April, Deere announced a new global operating model that combines the technology, expertise, experience, channels and investments of two former divisions.
Those two business units — which individually focused on agricultural and commercial & consumer equipment — became a single unit named the Worldwide Agriculture and Turf Division, effective May 1, 2009.
The voluntary separation program was designed to help Deere immediately leverage the efficiencies of the merged divisions. The company said it expects the new operating model will enhance its competitive position around the world.
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