American icon John Deere, known for its green tractors and leaping deer logo, is facing backlash from its U.S. workers as it plans to move more production to Mexico, resulting in significant layoffs. Employees are accusing the company of prioritizing profits over people.
Over the past few months, John Deere has announced several hundred layoffs, with more expected later this year. A worker at the Harvester Works plant in East Moline, Illinois, expressed frustration, stating that the constant news of layoffs is causing widespread uncertainty. The worker, who wished to remain anonymous, accused the company of being driven by greed.
John Deere’s financials reveal substantial profits, with over $10 billion reported in the fiscal year 2023. CEO John May received $26.7 million in total compensation, and the company spent $7.2 billion on stock buybacks and $1.4 billion on dividends for shareholders. This financial success contrasts sharply with the anxiety and job insecurity faced by the workers.
The Harvester Works plant is still operational, but employees are uneasy due to the lack of communication from management. The usual “time to talk” meetings have ceased, leaving workers in the dark about their job status. Many believe that significant layoffs will occur after the plant completes its production schedule in mid-August.
In October of last year, John Deere announced 250 indefinite layoffs at its Illinois plant, followed by 34 more in May. This year, the company cut 650 jobs in Iowa, including 500 in Waterloo and 150 in Ankeny. Additionally, 103 workers at the Ottumwa plant accepted early retirement after learning about impending job cuts and the transfer of production to Mexico.
Some workers have opted for early retirement due to fears of being laid off. The impact on small towns, which have limited employment opportunities outside of John Deere are nervous about the potential job losses. The closing will have ripple effects through these small communities affecting everyone from the barber to the budgets of local law enforcement.
Multinational companies like John Deere find Mexico attractive due to its cheaper labor and material costs. This shift is part of a broader trend where manufacturing jobs, especially unionized positions, are leaving the U.S. for countries with lower production costs.
Local news outlet KWWL News 7 reported that John Deere sent an email to its workers about more layoffs planned for the third quarter of this year, although the exact numbers were not disclosed. The company also announced plans to transfer production of skid steer loaders and compact track loaders from Dubuque to Mexico by late 2026.
In 2022, John Deere revealed plans to move cab production from Iowa to Mexico, affecting 250 employees. Despite these layoffs, John Deere’s 2023 annual report stated that the company employs 33,800 workers in the U.S. and Canada.
These layoffs follow a significant strike in October 2021, when over 10,000 workers at 14 John Deere plants in several states protested for better conditions. The strike, part of the broader “Striketober” movement, ended in November 2021 with a new six-year union contract agreement.
John Deere has not responded to multiple requests for comments on these developments. The ongoing layoffs and production shifts continue to stir controversy and concern among workers and their communities.
