John Deere laying off hundreds of Midwest workers
(NewsNation) — John Deere plans to lay off hundreds of employees across three Midwest factories by the end of next month.
Around 600 production workers at factories in East Moline, Illinois, and Davenport and Dubuque, Iowa, will be laid off effective Aug. 30, according to a release obtained by WHBF.
The layoffs are due to reduced demand for products from those factories, the company said.
Is this cost-cutting or are jobs being moved outside the US?
The announcement follows John Deere's decision to move some operations from one of its Iowa facilities to Mexico by the end of 2026. The company will move the manufacturing of skid steer loaders and compact track loaders from its Dubuque facility to Mexico.
The company said the decision was due to its efforts to evolve its business model, address rising manufacturing costs, and improve operational efficiencies, Fox News reported.
Deer also announced several layoffs earlier this year.
In June, more than 120 employees at its seeding and cylinder operations in Moline were placed on indefinite leave effective June 28, and about 500 employees were let go from its Waterloo plant in Iowa, per WQAD.
Additionally, in March, 150 employees at its Ankeny plant in Iowa faced layoffs, and more than 200 employees were laid off at its Harvester Works plant in East Moline in October 2023.
Farmers are buying less equipment
In May, Deere lowered its full-year profit forecast for the second time as farmers bought fewer tractors and other equipment amid declining crop prices.
Deere, which makes agricultural equipment, cut its profit outlook to $7 billion from a previous range of $7.50 billion to $7.75 billion. Before that, the company had forecast a 2024 profit between $7.75 billion and $8.25 billion.
The U.S. Department of Agriculture anticipates that 2024 net farm income, a broad measure of profits, will total $116.1 billion. That’s down 25.5% from a year earlier. Adjusting for inflation, net farm income is expected to be down 27.1% this year as farmers contend with lower prices for soybeans and corn. The USDA said that lower direct government payments and increased production costs are also weighing on farmers.
The Associated Press contributed to this story.