Nearly 500 production employees at the John Deere Ottumwa Works, Ottumwa, IA, will be laid off until later this year “to ensure that factory production is aligned with market demand,” according to Deere & Company.

A total of 494 will go on indefinite layoff effective June 29; another 195 will face periodic inventory adjustment layoffs throughout the next several months. The Ottumwa plant manufactures balers, mower-conditioners, windrowers and pull-type forage harvesters.

The layoff extends the normal two-week summer shutdown at the plant. Market conditions will define when employees can return to work, according to the company. Layoffs are based on seniority with the company.

Deere’s worldwide net sales and revenues declined 17%, to $6.748 billion, for the second quarter and were down 11%, to $11.894 billion for six months, compared to that of a year ago, according to the company. Net sales of the equipment operations were $6.187 billion for the quarter and $10.747 billion for six months, compared with $7.469 billion and $11.999 billion last year.