The number of agricultural equipment manufacturers that are reducing the size of their workforces is growing, with planter-maker Kinze Manufacturing joining the list of companies that are publicly acknowledging layoffs.
Kinze has issued layoff notices to 193 of its 815 employees in Williamsburg, Iowa, as of August 1.
“We deeply regret the necessity of this action,” says Susanne Veatch, president of Kinze. “This decision was not made lightly, and it is a direct response to current ag market realities.”
John Deere confirmed another 134 layoffs this week at its seeding and cylinder plant in Moline, Illinois, adding to the global workforce reduction that has seen more than a thousand Deere staff let go over the past few months.
“As the largest global manufacturer of agricultural equipment, John Deere, like many others in the industry, faces significant economic challenges, including rising global operational and manufacturing costs, and reduced customer demand,” said Deere & Co. in a statement.
“As stated in our second quarter earnings call, industry sales are expected to decline 20 per cent from 2023 to 2024,” continued Deere, whose third quarter earnings will be reported in mid-August.
CNH Industrial — the parent company of Case IH and New Holland — said it has reduced its ag production hours by 30 per cent year-over-year in its second quarter earnings call on July 31, as net ag sales had declined by 20 per cent versus the same quarter last year. In April, the company said it would be laying off 200 workers at the Case IH facility in Racine, Wisconsin.
A day earlier, AGCO said it had reduced its production hours by 23 per cent in its second quarter. The parent company of Fendt, Massey Ferguson, and Precision Planting said its net sales for the quarter were down just over 15 per cent versus last year.
AGCO previously said it plans to move production of balers and mowers from Hesston, Kansas to Mexico in 2025.
“Declines in commodity prices and lower projected farm income in 2024 have negatively affected farmer sentiment, further dampening global industry demand. Given the current environment, we are taking aggressive actions…to control expenses, reduce production levels and lower investments in working capital,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer, in the earnings release on Wednesday.
Canadian manufacturer Salford Group — owned by Linamar — is also downsizing, as Salford filed the required notice last month with authorities in Iowa that it is closing its Osceola manufacturing plant, laying off 51 workers.
U.S. Bureau of Labor Statistics monthly data shows the number of American jobs in machinery manufacturing, which also includes non-agricultural manufacturing, has declined by around 10 thousand in the past year.
Statistics Canada’s monthly labour data for June showed the number of manufacturing jobs down around three thousand from the year prior.
