Jackson company lays off 80 peopleJACKSON — Eighty employees, or approximately 10 percent of the workforce at AGCO in Jackson, will be laid off by Oct. 2, the company announced Wednesday.
By: Kari Lucin, Worthington Daily Globe
JACKSON — Eighty employees, or approximately 10 percent of the workforce at AGCO in Jackson, will be laid off by Oct. 2, the company announced Wednesday.
“I am confident of the strong leadership at AGCO,” said Jackson’s mayor, Mitch Jasper. “There is no doubt in my mind that AGCO’s workforce will be back to full capacity in no time at all. This is just a bump in the road in a wild economy.”
City officials were informed of the layoffs Tuesday afternoon.
AGCO is the largest employer in Jackson and will remain so after the layoffs, continuing to employ more than 700 people.
The company produces agriculture equipment, including tractors, combines, sprayers and forage equipment, under the brands Challenger, Fendt, Massey Ferguson and Valtra.
AGCO blames layoffs on the softening market and decreased demand for its products, and it is evaluating all its operations in order to adjust production levels to meet market demands, a company representative said.
AGCO updated its 2009 net sales outlook last week, predicting sales and operating income would be lower than previous forecasts “due to softening market conditions, slowing order intake, continuing efforts to reduce dealer inventory and lower than anticipated margins.”
Jasper said he does not see the layoffs affecting Jackson in the big picture, saying “AGCO has strong leadership and they’ve done well in Jackson, and Jackson has done well because of AGCO.”