Things are no longer going as smoothly as they used to with sales to various agricultural manufacturers. Previously, the Austrian manufacturer Pöttinger announced quite a few layoffs, but now it is machine manufacturer Claas that is giving employees at the factory in Germany longer holidays. The cause is the reduced demand for agricultural mechanization and vehicles, which means cuts have to be made. John Deere also recently announced a series of layoffs due to a more difficult sales market.
Sales figures at machine manufacturer Claas in Harsewinkel (Germany) have fallen recently and the company has therefore been forced to cut 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 a three-week reduction in working hours. This measure should help to safeguard existing jobs in the long term. The measure affects 900 of the 3.500 employees, both production and office staff. Moreover, the company already announced in its 2023 annual report that the demand for agricultural mechanization was expected to decline in 2024.
Claas sends staff on holiday
Machine manufacturer Claas is not the only one that has to take tough measures due to the more difficult market. For example, the Austrian agricultural machinery manufacturer Pöttinger announced in early June that it was laying off 200 employees and putting another 450 employees on unpaid leave, the Austrian news agency OÖ Nachrichten reports. The company has 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.
And there are several machine manufacturers who have taken measures for the same reason. For example, at the end of June this year it was announced that machine manufacturer Fendt had also applied short-time working in various German factories.
Layoffs at John Deere
John Deere also announced at the beginning of July that it was cutting 600 jobs at three American factories. This is the next announcement in a series of layoffs that the company has previously implemented. According to various American news reports, the elimination of the 600 jobs is partly related to moving production to a new factory in Mexico. In addition, these changes are being implemented due to reduced demand for the products produced in these facilities, John Deere itself reported in a statement to the American CNN. With the declining demand for mechanization, not both factories can maintain production capacity. The reason for the declining demand is, among other things, the disappointing grain prices, which means that arable farmers have less financial leeway.