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September 10, 2009
Deere & Co. (DE) will put 367 employees on indefinite layoff at its East Moline, Ill., factory later this month due to reduced demand.
The world's largest maker of farm equipment has been shedding jobs at several of its factories by a few hundred employees at a time throughout the year because of the demand slump. Still, the figures have been relatively small, as Deere has over 50,000 employees.
The cuts announced Thursday resulted in a 20% reduction in manufacturing at the facility. The location manufactures front-end equipment for harvesting.
Deere said the layoffs, set to go into effect on Sept. 21, would affect production workers with the least seniority.
Many farmers have been delaying purchases of higher-priced equipment like tractors, leaving sellers stuck with inventory produced during last year's boom. Last month, Deere reported its fiscal third-quarter profit dropped by 27% on lower sales and continued weak demand outside the U.S. and Canada.
Shares were down 1.4% at $42.43 in after-hours trading.