Deere & Co., the leading global seller of farm machinery, has announced plans to reduce its workforce in response to increasing operational costs and a decline in demand. The company, known for its iconic green and yellow tractors, will be parting ways with an undisclosed number of employees in both its production and salaried divisions.

In a letter signed by Chief Executive Officer John May, Deere & Co. expressed regret over the necessity of the layoffs, stating, ‘Unfortunately, this means parting with some of our talented and dedicated colleagues.’ The final decisions regarding the layoffs are expected to be made by the end of the third quarter in July.

Deere & Co. has attributed the need for these workforce reductions to rising operational expenses and a decrease in agricultural income, which has resulted in farmers having less capital to invest in new machinery. This announcement comes shortly after the company revised its annual outlook due to the challenging market conditions.

As Deere & Co. prepares to implement these changes, employees and industry analysts are closely monitoring the situation to assess the impact on the company’s operations and overall market position. The decision to downsize the workforce reflects the company’s strategic response to the evolving economic landscape and aims to ensure its long-term sustainability and competitiveness in the agricultural machinery sector.