John Deere (John Deere) said that next week (May 11-16) will suspend production of construction and forestry equipment, and plans to lay off workers next month.
According to "The Quad-City Times", the equipment manufacturer will stop production at its Davenport and Dubuque plants in Iowa from May 11. In Dubuque, John Deere will also lay off 159 employees.
The company said in a statement to the New York Times that the coronavirus pandemic had already had a negative impact on the company's business, so it made the decision to temporarily close the factory and lay off workers.
Deere ’s statement said: “The direct cause of the temporary shutdown is the disruption of the supply chain caused by the new crown epidemic and the weakening of demand for construction and forestry equipment. In fact, the temporary shutdown is also a regular occurrence of the factory every year, which is a common measure for supply and demand adjustment.
Before the coronavirus pandemic, John Deere's sales and revenue fell by 4% year-on-year. At the time, the company stated that sales in fiscal 2020 would fall by 10% to 15%. After being affected by the coronavirus, John Deere cancelled this prediction, and no prediction has been released so far.
It is understood that after the release of the first quarter revenue construction and forestry equipment sales fell by 10% in February, Deere announced a layoff of 105 people. Dubuque's layoffs are the plant's second round of layoffs this year.
