Duluth, Georgia-based AGCO Corporation, a manufacturer of agricultural machinery including tractors, combines, foragers, hay tools, self-propelled sprayers, smart farming technologies, seeding equipment, and tillage equipment, has announced a restructuring initiative to cut overhead, including personnel costs.
The restructuring will impact approximately 6% or 1,680 employees.
According to the company's SEC filing...
The changes come in response to “increased weakening demand in the agriculture industry,” Agco told investors. With net farm income falling and stubbornly high interest rates sticking around, borrowers are pulling back on big-ticket items.
The initial phase of the Program is focused on further reducing structural costs, streamlining the Company’s workforce, and enhancing global efficiencies related to changing the Company’s operating model for certain corporate and back-office functions and better leveraging technology and global centers of excellence.
The initial phase of the Program is expected to result in a net reduction of the Company’s salaried workforce by up to approximately 6% as compared to its salaried workforce as of December 31, 2023.
As part of the Program, the Company expects to evaluate other opportunities to further enhance global operating efficiencies that could result in additional restructuring charges related to future phases of the Program. The Company is unable at this time to quantify the charges and benefits related to potential future phases of the Program.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?