John Deere, the American icon of farm equipment, has announced that it will lay off about 610 workers from its plants in Illinois and Iowa. These job cuts are happening because the company is facing rising costs and lower demand for their products. The affected plants include East Moline, Illinois, where 280 workers will lose their jobs, Davenport, Iowa, where 230 employees will be let go, and Dubuque, Iowa, where 100 workers will be impacted. These layoffs are expected to take place by the end of the summer.
Deere & Company, doing business as John Deere, is an American corporation that manufactures agricultural machinery, heavy equipment, forestry machinery, diesel engines, drivetrains (such as axles, transmissions, and gearboxes) used in heavy equipment, and lawn care equipment. The company also provides financial services and other related activities. It is listed on the New York Stock Exchange under the symbol DE and is headquartered in Moline, Illinois. Known for its slogan “Nothing Runs Like a Deere” and its iconic leaping deer logo, John Deere has used various versions of this logo for over 155 years.
Last year, John Deere made $10.166 billion in profits, but the company explained that it needs to make these cuts because fewer people are buying their products and the costs to run their factories are going up.
In a statement, the company said, “We need to make changes across the whole company to reach our goals and set us up for the future.” To help the laid-off workers, John Deere is offering a Supplemental Unemployment Benefit (SUB), which will cover about 95% of their weekly pay for up to 26 weeks, depending on how long they have worked at the company. The workers will also receive profit-sharing options and health benefits.
John Deere, which was founded in 1837, is focusing on changing how it operates. Earlier this month, they announced that by the end of 2026, they will move the production of certain equipment from Dubuque, Iowa, to Mexico.
This move is meant to save money and improve efficiency. The company stated, “We are making our factories ready for future products, making our operations more efficient, and using locations in the U.S. and around the world.”
This is not the first time John Deere has laid off workers recently. In October, 225 workers were laid off at the East Moline plant. In May, 34 workers were let go at the Moline Cylinder Works factory, and in March, 150 workers were laid off at the Ankeny, Iowa plant. In total, around 500 employees have been let go from the Waterloo plant in Iowa.
As of Friday evening, John Deere’s market value was about $102.81 billion. The company made $27.42 billion in sales and revenue over the first two quarters of the year, with a net income of $4.121 billion. However, John Deere has lowered its profit expectations for the year because it expects a bigger drop in sales of large farming equipment. Lower crop prices have resulted in unsold tractors and combines, leading some sellers to offer discounts and stop taking new orders. The U.S. Department of Agriculture also predicted that farm income would drop by 25.5% to $116.1 billion this year compared to 2023.
Adding to the news, it was reported on Wednesday that John Deere CEO John May has put his 80-acre horse farm up for sale, asking for $3.925 million. These layoffs and changes show the challenges John Deere is facing as it tries to stay competitive in the global market. The company’s efforts to cut costs and improve efficiency are seen as necessary steps to keep its leading position in the agricultural equipment industry.
John Deere ranked No. 84 in the 2022 Fortune 500 list of the largest United States corporations. The company’s tractor series include D series, E series, Specialty Tractors, Super Heavy Duty Tractors, and JDLink, highlighting its extensive range of products in the agricultural sector.
