John Deere & Co., the world’s largest agricultural equipment manufacturer, is set to cut nearly 600 production jobs across three Midwest locations due to challenging market conditions. The company confirmed the job cuts, stating that approximately 280 positions at its home plant in Moline, Illinois, will be affected. Additionally, around 210 employees at a plant in Davenport and 100 in Dubuque, both located in Iowa, will lose their jobs.
The decision to reduce production and slash jobs is a result of reduced demand for the company’s products at these facilities. John Deere aims to better position itself to meet future demand by taking proactive steps to reduce production and inventory. The layoffs will be effective from August 30.
To support the affected workers, John Deere will provide them with Supplemental Unemployment Benefits (SUB), covering about 95 percent of their weekly net pay for up to 26 weeks. The company will also offer job-placement assistance, healthcare benefits, and tuition reimbursement, among other benefits.
This announcement comes shortly after John Deere revealed plans to move operations from one of its Iowa facilities to Mexico by the end of 2026. The company intends to build a new factory in Ramos and transfer the manufacturing of skid steer and track loaders from its Dubuque facility to Mexico. Despite these changes, around 2,200 employees will remain at the Moline plant, and a combined 4,100 workers will continue working at the two Iowa factories.
John Deere’s second-quarter earnings report showed a 12 percent decrease in global net sales and revenues. The company’s net income for the period was $2.37 billion, down from $2.86 billion the previous year. Falling crop prices have contributed to farmers buying fewer tractors and equipment, leading to declining demand for John Deere’s products.
John May, chairman and CEO of John Deere, acknowledged the challenging market conditions and expects sales to further decline in the second half of fiscal 2024. However, the company remains committed to its strategy and continues to invest in innovative technologies, products, and solutions to ensure customer success.
The layoffs coincide with the U.S. Department of Agriculture’s forecast of a 25.5 percent decrease in net farm income for this year. Lower prices for soybeans and corn, along with increased production costs, are putting additional pressure on farmers. These factors contribute to the reduced demand for agricultural equipment.
John Deere’s decision to cut production jobs reflects the company’s efforts to adapt to changing market conditions and position itself for future success. Despite the challenges, John Deere remains committed to its long-term strategy and is actively investing in innovative solutions to support its customers.
