Moline, Illinois – John Deere, a prominent manufacturer of tractors and crop harvesters, has announced a significant round of layoffs impacting production staff at plants in Illinois and Iowa. Around 610 employees will be affected by the layoffs, with the company citing reduced demand for their products from these factories.
The company is expected to cut approximately 280 workers at a plant in East Moline, Illinois, while another 230 employees will be let go at a factory in Davenport, Iowa. Additionally, about 100 production employees at the company’s Dubuque, Iowa, plant will also be impacted. These layoffs are set to take effect by the end of the summer, according to a press release.
John Deere, known for its iconic green and yellow branding, has been in operation since 1837 and has experienced various changes in recent years. The company reported generating $10.166 billion in profits last year, reflecting its ongoing presence in the agricultural equipment market.
In response to the layoffs, affected workers will be offered Supplemental Unemployment Benefits (SUB) covering 95% of their weekly net pay for up to 26 weeks, in addition to profit-sharing options and health benefits. This move comes as the company aims to streamline operations and adapt to evolving market conditions.
Earlier this month, Deere announced plans to shift manufacturing operations from its Dubuque facility to Mexico by the end of 2026 as part of its efforts to enhance operational efficiencies. The company has also previously announced layoffs at other plants in the region, affecting hundreds of employees.
Overall, John Deere’s latest round of layoffs reflects broader challenges faced by agricultural equipment manufacturers amid lower crop prices and declining farm income. The Department of Agriculture has forecasted a 25.5% decline in farm income this year, contributing to the industry’s current landscape of excess inventory and decreased sales.
This news of layoffs within the company coincides with reports of John Deere CEO John May listing his 80-acre horse farm property for sale, adding another layer to the evolving narrative surrounding the company’s leadership and business decisions. As John Deere navigates these changes, it remains a key player in the agricultural equipment market, balancing tradition with the need for innovation to ensure future success.