John Deere announced Friday it will lay off approximately 610 workers between three of its plants in Illinois and Iowa, Fox News reported.
The agricultural machinery giant is set to layoff hundreds of workers due to declining demand for its products, with all layoffs taking effect August 30, according to the outlet. The move reportedly affects 280 workers at the East Moline, Illinois plant, 230 at the Davenport, Iowa factory and about 100 at the Dubuque, Iowa facility.
The company is offering affected workers a Supplemental Unemployment Benefit, covering about 95% of their weekly net pay for up to 26 weeks, based on length of service, the outlet reported. In addition, they will reportedly receive profit-sharing options and health benefits. The layoff was originally announced May 31 through a company-wide email sent to employees, a Reddit user claimed.
John Deere is reportedly slashing positions for hundreds of employees in the Midwest by the end of summer. ➡️ https://t.co/kI0E07S93R pic.twitter.com/OEz3G7M7qg
— FOX 32 News (@fox32news) June 29, 2024
Despite posting a profit of $10.166 billion in 2023, John Deere cited operational costs and a downturn in market demand as reasons for the layoffs, Fox News reported.
“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 statement from John Deere reads, Fox News reported.
This series of layoffs is reportedly part of a broader strategy to optimize operations amid evolving business conditions. John Deere announced plans May 31 to relocate the production of skid steer and compact track loaders from Dubuque, Iowa to Mexico by the end of 2026, aiming to address rising manufacturing costs and improve efficiency, the outlet reported. (RELATED: Job Growth Exceeds Expectations Despite Mass Layoffs)
The company previously laid off workers at various plants, totaling approximately 500 at its Waterloo, Iowa plant alone, Fox News stated. A John Deere employee from the Harvester Works plant in East Moline expressed concerns to The Guardian about the frequency of layoff announcements and seemingly attributed them to corporate greed.
Green John Deere 5115 ML tractor on a farm under a clear blue sky, Brentwood, California, June 15, 2024. (Photo by Smith Collection/Gado/Getty Images)
“We get wind of more layoffs daily, it seems, and it’s causing uncertainty all over,” the worker, who reportedly wished to remain anonymous, told The Guardian. “The only reason for Deere to do this is greed.”
Amid these organizational changes, John Deere’s market capitalization stands at about $102.81 billion, with a net income of $4.121 billion reported for the first half of the year, Fox News reported. However, the company reportedly revised its profit forecast downwards twice in 2024, reflecting anticipated declines in sales of large agricultural equipment due to lower crop prices and an oversupply in the market.
The agricultural sector’s challenges are further highlighted by a Department of Agriculture forecast, which predicts a 25.5% decrease in farm income in 2024 compared to 2023, according to Fox News.