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Deere & Company Offers Some Employees Early Retirement
DES MOINES, Iowa — On the heels of layoff announcements, Deere & Co. is offering employees in certain segments of its operation early retirement packages.
On Friday, a company spokesperson confirmed to Agriculture.com that Deere has announced a voluntary separation program offered to certain segments of the U.S. active salaried employees.
“Deere is deploying this voluntary separation program to create a leaner, more focused organization that is agile and has the skills and competencies needed for the future,” says Ken Golden, director, strategic public relations at Deere & Company.
While most employees working in precision technologies and other new product programs are not eligible, for those who are eligible, the program is offered to employees of all tenures of service, Golden stated.
“We will not comment on how many employees were offered the voluntary separation or whether there is a goal of how many employees will participate in the program,” Golden stated.
Part of the strategy to reduce costs involves an overall assessment of the company’s productivity of some of its overseas operations. The end goal intention is to serve specific markets more efficiently in the future, Deere says.
Recently, the Moline, Illinois-based agricultural equipment company announced layoffs at several facilities.
Golden stated in the email that each Deere factory balances the size of its production workforce with customer demand for products from their individual factory.
The December announcements included 57 production employees at Davenport Works, effective January 6, and 23 production employees at Des Moines Works, effective December 15. Other layoffs in the production workforce since September have included 50 employees at Coffeyville, 50 at Harvester Works, and 113 at Davenport Works.
For fiscal year 2019, Deere recorded its second-best year ever in both net sales of equipment operations and net income. The fiscal 2019 season ended in October.
Net income is forecasted to drop from $3.2 billion, in 2019, to between $2.7 to $3.1 billion for 2020.
“Deere said it expects net sales in the Ag & Turf Division to be down 5% to 10% in FY 2020,” Golden stated Friday.