Deere & Co. officially announced Tuesday it will be laying off 700 of 1,000 workers at its Ottumwa plant.

Local paper The Ottumwa Courier broke news of the layoffs last week, with the company denying the rumors and refusing to comment. The company’s second-quarter profit dropped 38 percent as customers cut spending on tractors, mowers and construction equipment.

Of approximately 1,000 total employees, 494 will go on indefinite layoff on June 29. Another 195 will face periodic layoffs the company terms “inventory adjustment layoffs,” throughout the next several months. All layoffs are in the production section of the plant.

In March, the company layed off 40 workers in Ottumwa. Statewide, the company currently employs 11,400 workers.