Is Deere Going To Fire Employees Amid A Drop In Agricultural Sales In 2025?

The quarterly performance of equipment sales has made things a little anxious for the employees of Deere. 

The company has recently announced a big layoff in different facilities due to the low performance in sales of agricultural equipment. This is a clear example of the toughest and most challenging market situation in the entire States, as different factors are fueling the construction market to shake vigorously.

The company might be taking these tough decisions to balance the low demand and higher inventory level.

Why did the quarterly performance of the brand drop sharply?

Deere’s fiscal year 2025 third quarter ended with a sharp decline in profits. A net income of $1.289 billion, or $4.75 per share, was reported by the company. Comparing that quarter to the same period last year, when Deere’s net income was $1.734 billion, or $6.29 per share, shows a 26% drop. In the agricultural machinery industry, where high inventories and decreased farmer spending are having a negative impact, the decline highlights how much narrower margins have gotten.

Deere’s net income for the first nine months of the year was $3.962 billion, which was a considerable decrease from the $5.855 billion earned in the same period of 2024. This decline was also reflected in net sales, which fell 18% year-to-date to $33.290 billion, and 9% globally in the third quarter to $12.018 billion. The volatility of the agricultural market is clearly weighing on Deere’s bottom line, as fewer new machines are sold through dealer lots.

In which facilities will layoffs be taken?

Now the workers are more in trouble or in a situation of puzzle, as they might be expecting their names in the list of layoff employees. However, the company has already declared the facilities where the layoffs will be taken, and it is most certainly Foundry in Waterloo, Iowa; the second one is the seeding and cylinder operations in Moline, Illinois; and the third one is its harvester works facility in East Moline, Illinois.

All these locations are on the top of the list for the lower sales performance in the market in 2025 till now. Which has made Deere take this decision, as the demand is low and the production is costing them the most.

While layoffs are never welcome news, they are an indication of Deere’s attempts to better match its workforce and production to the demands of the market. The business has been open about its proactive inventory management approach, which aims to better align production with what farmers and contractors are actually purchasing.

How is Deere controlling the used equipment inventory level?

One of Deere’s main challenges has been the high volume of used equipment in circulation. One of the main issues facing Deere has been the substantial amount of used heavy construction equipment still in use. Sales of new machines are naturally slowed down by dealers’ increased stock of used equipment throughout North America. According to Deere’s leadership, resolving this imbalance will contribute to a more wholesome market for their dealers and consumers alike.

In a recent statement, John May, the chairman and CEO of Deere, stated that one strategy to increase the company’s resilience during a challenging cycle is to match production with retail demand. The long-term objective is to maintain Deere and its dealer network in a position to swiftly recover once demand picks up, even though the short-term adjustments are painful.

Is it a good idea to automate or use techs to upgrade the entire system?

Even with the current upheaval, Deere is committed to its long-term growth plan. To keep its competitive edge, the business is depending on cutting-edge technology. With the help of precision tools like Harvest Settings Automation and the See & Spray system, which have demonstrated impressive in-field results, farmers can boost productivity even in challenging economic times. In addition to helping consumers overcome present obstacles, Deere thinks that investing in these technologies will strengthen brand loyalty over the long run.

This strategy reflects a larger change in the industry where smart farming, automation, and efficiency are becoming crucial. As the market regains its footing, Deere hopes to maintain its position as a leader in agricultural machinery by pushing the boundaries of innovation.

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