John Deere Forestry has announced it may temporarily close its Joensuu plant due to market shifts, which would lay off 367 employees. Falling demand for forestry machinery may also lead to furloughs lasting up to 90 days.
A recent report from the Finnish broadcaster Yle says John Deere Forestry has begun discussions with employees at its forest-machine manufacturing facility in Joensuu. The company is exploring the possibility of implementing temporary layoffs, as part of its strategy to address current operational challenges at the site.
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The change negotiations cover 367 hourly-paid employees, and any temporary layoffs could last up to 90 days.
The company cites uncertainty and deterioration in market conditions, which have reduced demand for forestry machines and its order backlog. These are proposed measures at this stage, not confirmation that the company will lay off all 367 workers.
This is particularly significant for the forestry machinery industry because it points to weaker demand for new harvesting equipment, rather than simply a general slowdown in agricultural machinery.
The production capacity of Forestry Machines at the Joensuu plant is eight machines per day.
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