Deere & Co. will lay off 150 workers at an Iowa manufacturing plant as the agriculture equipment giant weathers declining demand for farm machinery.
The tractor giant said in a statement to Agriculture Dive on Wednesday that approximately 150 production employees at John Deere Des Moines Works in Ankeny, Iowa, will be let go throughout April and May.
"Each John Deere factory balances the size of its production workforce with the needs of the individual factory to optimize the workforce at each facility," a Deere spokesperson said in an email. Leadership informed workers of the layoffs on Friday.
Around 1,700 people work at the facility, with the majority in production and maintenance jobs. The factory manufactures sprayers, cotton pickers and other heavy machinery.
After three years of record demand, Deere is preparing for large ag equipment sales to decline by up to 15% in fiscal year 2024. Worldwide net sales and revenue dropped 4% in the first quarter, according to the company's latest earnings report.
The manufacturer recently presented plans to city officials for a 20,000-square-foot lab building and is currently expanding the Ankeny plant's sprayer facility, the Des Moines Register reported. Both projects are still moving forward, Deere said in a statement to Agriculture Dive.
