Des Moines, Iowa – Deere & Co. announced the layoff of nearly 600 workers as the farm equipment manufacturer navigates through a period of declining demand. The production positions being eliminated are primarily concentrated in Iowa, with layoffs impacting two factories in the state as well as one in Moline, Illinois. The 280 employees in Moline will be let go effective Aug. 30, while a combined total of 310 workers in Davenport and Dubuque, Iowa, will also lose their jobs.
During the second quarter earnings release in May, Deere reported a significant decline of more than 15% in revenue, marking the third consecutive quarter of year-over-year sales decreases. Company executives acknowledged the expected further sales declines in the second half of the fiscal year, prompting proactive steps to reduce production and inventory.
The quarterly profit for Deere & Co. amounted to $2.37 billion, illustrating a decrease from $2.86 billion from the previous year. The lowered full-year 2024 profit forecast comes as farmers are purchasing fewer tractors and equipment due to decreasing crop prices. The U.S. Department of Agriculture projects a 25.5% decrease in net farm income for 2024 compared to the previous year, primarily influenced by lower prices for soybeans and corn, accompanied by increased production costs.
The recent layoffs represent approximately 14% of the 4,000 production and maintenance jobs at the three impacted facilities. Deere employs a global workforce of over 80,000 individuals. In response to market dynamics, Deere decided to relocate their skid steer and track loader manufacturing from Dubuque, Iowa to Mexico by the end of 2026, with plans to establish a new factory in Ramos, Mexico.
Amidst the layoffs, over 120 production employees at Deere’s seeding and cylinder operations in Moline were placed on indefinite layoff starting June 28. According to Iowa WARN, a state registry of layoff notices, Deere anticipates laying off more than 1,000 Iowa workers in 2024 across various locations in the state, including Waterloo, Ankeny, and Urbandale.