JD - more layoff coming as Mexico gains

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   John Deere is expected to announce more layoffs next week. (Source: KCRG)By Brian Tabick
Published: Jul. 16, 2024 at 10:52 PM CDT
CEDAR RAPIDS, Iowa (KCRG) - John Deere is expected to announce more layoffs next week. That’s according to an email the Waterloo Courier reports employees received Monday.
This comes after the company announced thousands of layoffs company-wide in the last three months to move production to a new facility in Mexico.
Doctor Peter Orazem said the layoffs have to do with the cost of producing the tractor versus the demand for the product. He said during the pandemic the US agriculture economy was thriving. Farmers were then buying new equipment while the price of crops was being purchased at a high price. But he said that’s predicted to start turning around. The price to build a tractor is high but the sale price has gone down.
Moving some of the production to a plant in Mexico while laying off employees will make it cheaper to produce some of the products.
“Farm income is projected to fall 24% this year, so farmers are not expected to be purchasing new equipment in the way they were in 2021 and 2022,” said Orazem.
Deere is reporting a 12% decrease in revenue.

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Coke-in-MN Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Access Joined: 12 Sep 2009 Location: Afton MN Points: 41441	Post Options Post Reply Quote Coke-in-MN Report Post Thanks(0) Quote Reply Topic: JD - more layoff coming as Mexico gains Posted: 18 Jul 2024 at 12:09pm
	John Deere is expected to announce more layoffs next week. (Source: KCRG) By Brian Tabick Published: Jul. 16, 2024 at 10:52 PM CDT CEDAR RAPIDS, Iowa (KCRG) - John Deere is expected to announce more layoffs next week. That’s according to an email the Waterloo Courier reports employees received Monday. This comes after the company announced thousands of layoffs company-wide in the last three months to move production to a new facility in Mexico. Doctor Peter Orazem said the layoffs have to do with the cost of producing the tractor versus the demand for the product. He said during the pandemic the US agriculture economy was thriving. Farmers were then buying new equipment while the price of crops was being purchased at a high price. But he said that’s predicted to start turning around. The price to build a tractor is high but the sale price has gone down. Moving some of the production to a plant in Mexico while laying off employees will make it cheaper to produce some of the products. “Farm income is projected to fall 24% this year, so farmers are not expected to be purchasing new equipment in the way they were in 2021 and 2022,” said Orazem. Deere is reporting a 12% decrease in revenue.
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DougG Members Profile Send Private Message Find Members Posts Add to Buddy List Orange Level Joined: 20 Sep 2009 Location: Mo Points: 8064	Post Options Post Reply Quote DougG Report Post Thanks(0) Quote Reply Posted: 18 Jul 2024 at 6:30pm
	Yup this is only the beginning of JD factorys slowly shutting down and out sourced- seen a post on Ag Talk the average union worker is $90 bucks an hour,,; life happens and will fade away for JD production in North America