CNH officials say the layoffs are necessary because of the recession and reduced demand. Farm income is expected to be lower this year because crop prices are lower.
Earlier this year, Case New Holland also laid off about 300 workers at its Burlington, Iowa, and Fargo, N.D., plants.
About 40 of the Grand Island layoffs are expected to be temporary. Those workers will lose their jobs near the end of December, but will likely be called back later.