John Deere, the renowned agricultural machinery manufacturer, announced significant layoffs affecting its workforce in Illinois and Iowa.
On Friday, the company revealed that approximately 610 employees will be laid off by August 30. Specifically, 280 workers at the East Moline, Illinois plant, 230 at the Davenport, Iowa factory, and about 100 at the Dubuque, Iowa facility will be affected. The company has offered a Supplemental Unemployment Benefit to those laid off, covering about 95% of their weekly net pay for up to 26 weeks, depending on their length of service. Additionally, affected workers will receive profit-sharing options and health benefits.
Despite reporting a substantial profit of $10.166 billion in 2023, John Deere cited operational costs and a decline in market demand as reasons for these layoffs. In a statement, the company confirmed the necessity of enterprise-wide changes to adapt to evolving business conditions and to position itself better for the future.
This move is part of a broader strategy to optimize operations. On May 31, John Deere announced plans to relocate the production of skid steer and compact track loaders from Dubuque, Iowa to Mexico by the end of 2026. This relocation aims to address rising manufacturing costs and improve efficiency. The news has caused concern among employees, with some attributing the frequent layoffs to corporate greed.
One anonymous employee from the Harvester Works plant in East Moline told The Guardian, “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.”
Despite the layoffs, John Deere remains a financial powerhouse, with a market capitalization of approximately $102.81 billion and a net income of $4.121 billion reported for the first half of 2024. However, the company has revised its profit forecast downward twice this year due to anticipated declines in sales of large agricultural equipment, lower crop prices, and market oversupply.
These challenges reflect broader issues within the agricultural sector. The Department of Agriculture forecasts a 25.5% decrease in farm income in 2024 compared to 2023. This downturn is expected to further impact demand for agricultural machinery, adding to the industry’s woes.
