MOLINE, Ill., June 30 /CNW/ -- Deere & Company said today that
approximately 800 salaried employees will leave the company as a result of a
voluntary separation program announced in April. This total will enable the
company to achieve first-year savings of approximately $75 million after a
pretax expense of about $100 million primarily in the fourth quarter of 2009.
Previously, the company had estimated a pretax expense for the program of $50
million. This amount was reflected in the annual earnings guidance issued as
part of the second-quarter earnings release on May 20.
In April, Deere announced a new global operating model that combines the
technology, expertise, experience, channels and investments of two former
divisions. Those two business units - which individually focused on
agricultural and commercial & consumer equipment - became a single unit named
the Worldwide Agriculture and Turf Division, effective May 1, 2009.
The voluntary separation program was designed to help Deere immediately
leverage the efficiencies of the merged divisions. The company said it expects
the new operating model will enhance its competitive position around the
John Deere (Deere & Company - NYSE: DE) is a world leader in providing
advanced products and services for agriculture, forestry, construction, lawn
and turf care, landscaping and irrigation. John Deere also provides financial
services worldwide and manufactures and markets engines used in heavy
equipment. Since it was founded in 1837, the company has extended its heritage
of integrity, quality, commitment and innovation around the globe.
For further information:
For further information: Ken Golden, Director, Strategic Public
Relations of Deere & Company, +1-309-765-5678 Web Site: http://www.deere.com