CNH Industrial (CNH) Plunges 3.72% Amid Sales Slumps, Workforce Cuts, Geopolitical Tensions

Shares of CNH Industrial (CNH) fell to their lowest level since April 2025 on October 10, with an intraday decline of 4.10%, marking a 3.72% drop on the day and a 7.85% decline over three consecutive sessions. The selloff reflects mounting pressures from a confluence of economic, operational, and strategic headwinds affecting the global agricultural and construction equipment leader.

The company’s core sales have contracted sharply, with agriculture and construction equipment segments reporting 31% and 33% year-over-year declines in the fourth quarter of 2024. Weak demand from farmers and construction firms, driven by economic uncertainty and depressed commodity prices, has forced CNH to slow production and realign dealer inventories. Stagnant farm incomes and reduced infrastructure activity have compounded the challenge, mirroring broader industry-wide trends that have prompted peers to adopt similar cost-cutting measures.

Operational adjustments have included significant workforce reductions, notably at U.S. facilities in Fargo, North Dakota, and Benson, Minnesota, where 373 jobs were eliminated. These cuts, framed as a response to “current and anticipated market conditions,” underscore CNH’s prioritization of cost efficiency amid declining revenues. However, the lack of detailed transition support for affected workers has raised concerns about employee morale and long-term productivity impacts.

Geopolitical uncertainties further weigh on the stock. Policy shifts under the U.S. administration, including trade tensions with China, have introduced volatility in markets critical to CNH’s operations. Retaliatory tariffs on U.S. agricultural exports have strained demand for the company’s equipment, while CEO Gerrit Marx has warned of prolonged industry downturns exacerbated by political instability. These factors have dampened investor confidence, with Marx projecting a 13–18% decline in 2025 agricultural sales compared to 2024.

Strategic overhauls, including a potential plant closure in Burlington, Iowa, highlight CNH’s focus on cost optimization. The proposed shutdown, which could displace 350 workers, is tied to rising production costs and plans to relocate manufacturing to other U.S. or European facilities. While such moves aim to reduce expenses, they risk harming community ties and local economies, as seen in the estimated $500 million annual economic impact on Burlington. The company’s delisting from Euronext Milan and retaining only a New York listing also signals a streamlined capital structure, though it may limit access to European markets during financial stress.

Analysts remain divided on CNH’s ability to navigate the downturn. While cost-cutting measures and a $300 million share buyback program are seen as short-term stabilizers, long-term growth hinges on market recovery and strategic adaptability. Marx’s emphasis on innovation, such as precision farming technologies, offers a potential upside, but immediate financial pressures persist. The stock’s trajectory will likely depend on the company’s execution of these initiatives and its capacity to restore investor confidence amid ongoing sector challenges.