John Deere, the world’s largest seller of crop harvesters has said their Midwest workers will face another set of layoffs.
The company, which has begun moving production to Mexico, told over 600 production staff in Iowa and Illinois that they will lose their jobs this Summer.
Who Has Been Hit By Layoffs
John Deere is set to cut 280 jobs from its plant in East Moline, Illinois, with another 230 job losses set to hit the Davenport, Iowa factory.
Meanwhile, another 100 production employees in Dubuque, Iowa will also be effected. All layoffs will be effective from August 30th, 2024.
What Has John Deere Said?
“We can confirm Deere leadership recently communicated that rising operational costs and declining market demand requires enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future,” said John Deere in a statement.
Expanding on the reasons for the layoffs, John Deere stated, “This includes optimizing our factories for future products, making our operations more efficient and taking advantage of locations in the U.S. and globally, with a growing labor force.”
Move To Mexico
Amidst declining demand, John Deere has looked to decrease it’s production costs by moving operations to Mexico.
In June, the tractor sellers said they would move manufacturing of compact truck loaders and skid steer loaders from Dubuque, Iowa to Mexico by the end of 2026.
Not The First Wave of Layoffs
Previously, John Deere announced over 200 layoffs in East Moline in October, while another 34 production employees faced layoffs in May in Moline.
In March, John Deere officials said 150 workers in Ankeny, Iowa would face layoffs, while 500 have been let go at John Deere’s Waterloo plant in Iowa.
Support For Laid Off Workers
With hundreds of new layoffs being announced this Summer, many John Deere employees have been left fearful for their future. Now, the company has laid out a support package for employees facing job losses.
Workers facing layoffs will be offered Supplemental Unemployment Benefit (SUB) which will make up for 95% of their weekly pay for up to 6 months.
Workers Denounce “Greed”
The news of more layoffs prompted anger from John Deere workers – something which was not quelled by promises of Supplemental Unemployment Benefit (SUB).
One long-time John Deere worker said, “We get wind of more layoffs daily, it seems, and it’s causing uncertainty all over…The only reason for Deere to do this is greed.”
The Economic Forecast For John Deere
At the end of June, Deere’s market capitalization stood at $102.81 billion, while the company said in May that it had generated $27.42 billion in net revenue and sales over the first two quarters of 2024.
However, Deere recently cut its profit forecast for the second time. Meanwhile, the Department of Agriculture forecasted farm income would decrease by 25.5% from 2023.
Who Are John Deere?
John Deere was founded 187 years ago in Grand Detour, Illinois, and is now based in Moline, Illinois. It is ranked #64 on the Fortune 500.
Fox Business’s Michael Dorgan wrote, “Deere, known for its iconic green and yellow colors and jumping deer logo, is one of America’s oldest companies, having been established in 1837, nearly 25 years before the start of the Civil War.”
Company CEO Sells Property
In June, John Deere CEO John May put his 80-acre Illinois horse farm up for sale. It is being listed for $3.925 million.
The large property, with a 12-stall horse barn, is located in Rock Island County where the median home’s asking price is $149,900.
