Mechanization
Tractor manufacturers downsize staff
It's not going as smoothly as before with sales at various agricultural manufacturers. Earlier, the Austrian manufacturer Pöttinger already announced a significant number of layoffs, now it's the machine manufacturer Claas that is giving longer holidays to employees at the factory in Germany. The cause lies in the reduced demand for agricultural machinery and vehicles, which requires cost-cutting. John Deere also recently announced a series of layoffs due to a more difficult market.
Sales figures at machine manufacturer Claas in Harsewinkel (Germany) have declined in recent times, and for that reason, the company needs to cut back on machine production. For example, the production of combine harvesters will be interrupted until September. The 'summer break' will also be extended until the end of August with three weeks of reduced working hours. This measure is intended to help secure existing jobs in the long term. The measure affects 900 of the 3,500 employees, including both production and office staff. Incidentally, the company already announced in its 2023 annual report that the demand for agricultural machinery is expected to decrease in 2024.
Claas sends employees on holiday
Machine manufacturer Claas is not the only one that has to take drastic measures due to the more difficult market. The Austrian manufacturer of agricultural machinery, Pöttinger, announced in early June that it is laying off 200 employees and has placed another 450 employees on unpaid leave, as reported by the Austrian news agency OÖ Nachrichten. The company needs to temporarily adjust production capacity due to a sharp decrease in demand for their products. The company expects to restore production capacity in the fall.
Layoffs at John Deere
John Deere also announced in early July that it was cutting 600 jobs in three American factories. This is the latest announcement in a series of layoff rounds that the company had previously implemented. According to various American news reports, the elimination of the 600 jobs is partly due to the relocation of production to a new factory in Mexico. Additionally, these changes are being made due to the reduced demand for the products produced in these facilities, as reported by John Deere itself in a statement to American CNN. With the declining demand for mechanization, both factories cannot maintain production capacity. Causes of the declining demand include disappointing grain prices, which limit farmers' financial flexibility.
