Weak Agriculture Demand Leads to Deere Manufacturing Layoffs

Deere & Co. will lay off 180 workers in the Quad Cities area because of a slowdown in the agricultural economy that has cut demand for tractors, combines and other farm equipment, according to the Des Moines Register and other news outlets. Deere said it will lay off 150 workers at Harvester Works in East Moline, Ill., effective this week and 30 more workers at Davenport Works in Davenport, Iowa, effective Oct. 2.

Last month, Deere lowered its net income forecast for the year to $1.8 billion from $1.9 billion because of softness in the agriculture economy and a weak energy sector that has slowed down equipment purchases. Deere said it expects agriculture-related sales to decline 25 percent in 2015, with lower commodity prices and falling farm incomes playing a role.

Last week Deere and the United Auto Workers said they had begun negotiations on a new master labor agreement that will cover about 10,000 manufacturing workers in 12 facilities.