John Deere, the leading global seller of tractors and crop harvesters, announced another round of layoffs last Friday due to a collapse in demand and a slowing U.S. economy. The company informed approximately 610 production staff in its Illinois and Iowa plants that their employment would end by the end of the summer. According to John Deere, all layoffs will take effect on August 30.
The agricultural equipment supplier attributed the layoffs to reduced demand for its products manufactured at these locations. Despite reporting $10.166 billion in profits last year, the company cited rising operational costs and declining market demand as reasons for these changes. “We can confirm Deere leadership recently communicated that rising operational costs and declining market demand requires enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future,” a company statement reads.
This month, the company also announced plans to transfer the production of skid steer loaders and compact track loaders from its Dubuque facility to Mexico by the end of 2026, citing rising domestic manufacturing costs in the United States. In October, John Deere laid off 225 employees at its Harvester Works plant in East Moline. This was followed by layoffs at other locations, including 34 workers in May at its Moline Cylinder Works factory and 150 more in March at its Ankeny, Iowa, facility. Approximately 500 employees were let go at its Waterloo plant in Iowa earlier this year.
Lower crop prices have led to an excess of unsold tractors and combines, resulting in some equipment sellers offering discounts and suspending new orders. The Department of Agriculture forecasted a 25.5 percent decline in farm income to $116.1 billion this year compared to 2023 levels.
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