In a move expected to save about $90 million annually, Deere & Co. will cut its salaried work force by 8 percent, or 1,250 jobs. Early retirement will be offered to another 2,500 employees.

The Moline, Ill.-based manufacturer said the cutbacks are being made in an effort to “run lean and enhance our efficiency, competitiveness and financial strength for future growth opportunities.”

Deere will take a fourth-quarter after-tax charge of $140 million to cover the job cuts.

An early retirement package will to be offered to those employees whose age and years of service total at least 80 by Oct. 31. The company will waive the standard deduction for early retirement and add either an additional three years of service or a temporary cash benefit.

In other Deere news, the company signed an agreement with Stihl to manufacture engines using a reduced emission, 2-stroke engine fuel handling technology developed by Deere. Waiblingen, Germany-based Stihl will produce the engines. The technology is expected to have applications for handheld equipment, walk-behind products, marine products, utility engines, snowmobiles and motor scooters.

Stihl will use the engine technology to satisfy emissions standards such as the California Air Resource Board Tier II, Environmental Protection Agency Phase II and future European regulations.