KWCH - Kansas News and Weather - AGCO Laying Off 60 People

AGCO Laying Off 60 People

by Rebecca Gannon (HESSTON, Kan.)

A year after saying it had trouble finding workers, a Hesston company lays off dozens of employees.

"There's a lot of rumors flying," said Dallas Boese Wednesday afternoon as he stood across the street from his employer. "It's all day-to-day on what's going to happen next."

AGCo announced it would cut 60 employees, all hourly production people, on Wednesday.

"I feel sorry for those employees who don't have anything now," said Boese.

The company expanded recently, but it said demand then dropped. Many of the newly-unemployed were newly hired.

"Last year --we'd see 30 plus people hiring in," said Boese. "And now, they say were going to see 30 plus people leaving."

AGCo is the largest manufacturer in Harvey County, and it is also the largest employer. While it's located in Hesston, 12% of the city's residents work at AGCo. Meaning any layoffs and the economic impact from that could be felt outside the city limits.

"We feel for anyone affected," said City Administrator John Carder, "but it probably has more of a regional impact."

Last December, the city invested in AGCo, issuing $75 million in bonds. Carder is not concerned about that money; he hopes this is a temporary problem.

Boese sees this as the first hit from the recession, and hopes it's the last. "It's kind of odd that the economy is starting to pick up," he said, "and the recession is starting to hit us."

An AGCo spokesman says he's not aware of any future layoffs. He also says the company will call the 60 people if work becomes available in the future.

By Chris Durden (WICHITA, Kan.)

A year after saying it had trouble finding workers, AGCO in Hesston is laying people off.

The company tells Eyewitness News that 60 people will be out of a job. The company employs 1,500 people in the town of 3,700.

AGCO manufacturers and distributes agricultural equipment. The company says the recession has forced it to scale back operations.

In May 2008, the company said business was so good, it had trouble finding qualified employees.