Bridgestone Corporation said it will be offering worker buyouts at its agricultural tire plant in Des Moines, Iowa, in response to waning tractor sales and a decline in the farm economy.
In an email to Mekong Farmer, a Bridgestone spokesperson said the company notified local United Steelworkers leadership on Jan. 6 that it will be implementing a “voluntary separation option” due to ongoing demand constraints in the agriculture tire sector.
“Bridgestone will continue to monitor current market conditions and future forecasts across all of our businesses to review production schedules and adjust as conditions warrant,” the spokesperson added.
The decision underscores the ripple effects of a down farm economy that has forced Deere & Co., CNH and other agriculture equipment makers to decrease production and conduct layoffs, adversely impacting parts suppliers as well.
Deere has also made significant workforce changes, cutting thousands of manufacturing and office jobs over the last year, as farmers struggle with incomes during a period of high costs and low commodity prices. The tractor giant notified 75 workers at its Waterloo Works plant of layoffs last week.
Keenan Bell, president of USW Local 310L, said Bridgestone plans to make separation offers for up to 130 workers, the Des Moines Register reported, with employees who take the buyout getting $35,000.
Bell told the local news publication that 112 workers were interested in the buyouts as of Jan. 9, and layoffs or furloughs could be triggered if the full 130 workers do not accept the offer by the end of the month.
“We obviously don’t like seeing layoffs but I don’t think Bridgestone does, either, due to the difficulty we’ve had in the past filling positions,” Bell told the Des Moines Register, adding that the plant made about 900 new hires from 2021 to 2024, but only retained 200 of those workers.
In July, Bridgestone laid off more than 200 workers from the same location, citing demand headwinds among tractor makers, according to Iowa WARN notices. The tire giant is a recognized supplier to Deere and CNH, among others. About 875 people work at the Des Moines plant, the Des Moines Register reported.
“Bridgestone regularly evaluates all aspects of its business to ensure we remain competitive and that resources are allocated in a manner that best supports our business strategy,” the spokesperson said.