Deere to lay off most workers at Iowa plant

MOLINE — Deere & Co. says it will temporarily lay off most of the production workers at an Iowa plant because of weak demand for its products amid the global economic crisis.

The world's largest maker of farm machinery says 494 workers at its John Deere Ottumwa Works will be laid off indefinitely starting June 29. It says the factory's remaining 195 workers will be laid off periodically over the next several months.

The layoffs extend a normal two-week summer shutdown at the plant, which makes products such as harvesters used by hay and livestock producers.

Moline, Ill.-based Deere says market conditions will determine when the employees can return to work.

Deere has seen its fortunes fall recently as the slumping global economy hurts demand for its products.