Danfoss in Ames announces layoffs as agriculture downturn continues

Danfoss Power Solutions of Ames has announced it is laying off 40 workers on Aug. 31.

The announcement comes as the effects of a downturn in agricultural prices ripples through the farming machinery industry.

“We are adjusting Danfoss’ operating model to ensure full accountability, increased cost competitiveness, and faster decision-making . This means parting from some of our talented and dedicated colleagues," the company said in a prepared statement. "While this is not an easy decision to make, it is an important step we must take to ensure our long-term employer status.”

Danfoss said the laid-off employees will be able to apply for other open positions at the company and that it will "provide them with all the necessary support as well as the opportunity to participate in a transition program which includes separation benefits and outplacement services."

More: With thousands of Iowa jobs already cut, how deep will the farm downturn go?

The plant, with 1,023 employees, is one of the largest industrial employers in Ames, where it has operated since 1971. Denmark-based Danfoss operated it in partnership with Sauer, then assumed full control in 2013, according to SNIPS News, a trade publication.

It makes parts for mobile hydraulic machinery used in farming and construction, with clients that have included John Deere , which has laid off almost 2,300 employees across Iowa and Illinois since March amid the decline in demand for agricultural equipment.

Kevin Baskins covers jobs and the economy for the Des Moines Register. Reach him at kbaskins@registermedia.com .

This article originally appeared on Des Moines Register: Danfoss in Ames announces layoffs as agriculture downturn continues