John Deere Laying Off 600+ More Employees

Fox Business’ Michael Dorgan reported this past Saturday that “John Deere, the world’s largest seller of tractors and crop harvesters, has announced another wave of layoffs Friday, telling around 610 production staff at plants in Illinois and Iowa that they will be out of a job by the end of the summer.”

“The company is slashing around 280 workers from a plant in East Moline, Illinois, while another 230 employees are being let go at a factory in Davenport, Iowa,” Dorgan reported. “About 100 production employees at the company’s Dubuque, Iowa, plant will also be impacted. All layoffs are said to be effective from Aug. 30, the company tells Fox Business.”

The Associated Press reported that “the most recent layoffs amount to about 14% of the more than 4,000 production and maintenance jobs at the three facilities. Deere employs more than 80,000 people worldwide.”

These layoffs add to an increasing list of layoffs announced by Deere & Co. so far in 2024, the Des Moines Register’s Kate Kealey reported at the end of May 2024. More than 650 employees have already been laid off or are scheduled to be laid off in the opening months of 2024 at Deere & Co.

Layoffs Occur As Earnings Decline and Production Moves

The Associated Press reported that, “in its second-quarter earnings release in May, Deere reported a more than 15% decline in revenue, the third straight quarter of year-over-year sales declines. Company executives said at the time that they expected further sales declines in the second half of the fiscal year and said it would continue to ‘take proactive steps to reduce production and inventory.'”

“Deere & Co. turned in a quarterly profit of $2.37 billion, down from $2.86 billion in the same period the previous year, and lowered its full-year 2024 profit forecast for a second time as farmers continued to buy fewer tractors and other equipment due to declining prices for their crops,” the Associated Press reported. “The U.S. Department of Agriculture anticipates that 2024 net farm income, which is 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.”

Dorgan reported that “earlier this month, Deere announced it is moving the manufacturing of skid steer loaders and compact track loaders from its Dubuque facility to Mexico by the end of 2026. The company said the decision was due to it evolving its business model and to address rising manufacturing costs and improve operational efficiencies.”

“‘This includes optimizing our factories for future products, making our operations more efficient and taking advantage of locations in the U.S. and globally, with a growing labor force,’ a statement from the company reads,” Dorgan reported.

Salaried Layoffs Likely Coming This Month, Too

in addition to these announced layoffs, WQAD8’s Alec Doxsee reported that “the announcement comes a day after Deere confirmed an unspecified number of salaried employees will be laid off, likely by the end of July.”

“‘Salaried layoffs in the U.S. are expected to occur by the end of July,” the company said, according to Doxsee. “‘Meanwhile John Deere factories are consistently balancing the size of the production workforce with the needs of the individual factory to optimize the workforce at each facility.'”