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Deere & Company reported net income of $1.7 billion for the third quarter. That’s down from $2.9 billion in the same period last year. Deere CEO John May said the company has responded to weak market conditions by reducing costs and strategically aligning its production with customer needs.
Deere Beyond the Layoffs
John Deere Responds to Economy, Prepares for Future With Layoffs
7/25/2024 | 3:39 PM CDT
CHELSEA, Ala. (DTN -- Reducing its workforce by perhaps more than 2,000 employees in the past several months, Deere & Company is responding both to economics and to a vision for what it is becoming -- a manufacturer of machinery still, but one that foresees higher value in technology.
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Deere issued a statement Wednesday addressing its reduction-in-force activities. "As the largest global manufacturer of agricultural equipment, John Deere, like many others in our industry, faces significant economic challenges, rising operational and manufacturing costs, and reduced customer demand, including a 20% decline in sales from 2023 to 2024."
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Deere is projecting net sales in its production and precision ag segment to be down 20% to 25% for fiscal year 2024 with declines projected across nearly all its markets -- U.S., Canada, Europe and South America.
"As Deere looks at this right now, they are seeing two things. One is based upon what they are seeing in their economic condition," said Chad Hart, ag economist, Iowa State University. Deere is currently seeing declining business across every one of its markets -- ag, construction, forestry and residential. It must react to this, a down market cycle; painful for all when they occur, but not all that rare.
https://www.dtnpf.com/agriculture/we...onomy-prepares