AGCO Announces Significant Layoffs

AGCO Corp. announced a restructuring program to streamline its workforce and cut overhead costs amid operational changes and demand challenges. The Georgia-based company plans to reduce structural costs, enhance efficiencies, and better leverage technology. This includes shifting some production from Hesston, Kansas, to Querétaro, Mexico, without layoffs, impacting workers through attrition. AGCO aims to cut up to 6% of its salaried workforce, with a one-time termination expense of $150-$200 million.

The restructuring is expected to yield annual savings of up to $125 million by 2025. The changes respond to weakening agriculture demand and reduced net farm income, leading to production cuts and reevaluating additional cost-saving opportunities. AGCO shares fell 4% following the announcement.

Source: AgricultureDive.com