(News Nation) —John Deere Plans to lay off hundreds of employees in three regions Midwest The factory will be closed by the end of next month.
About 600 production workers at plants in East Moline, Illinois, and Davenport and Dubuque, Iowa, will be laid off effective August 30. According to Nexstar’s WHBF.
The company said the job cuts were due to a decline in demand for products at these plants.
Is this a cost-cutting measure or are jobs being moved outside the US?
The announcement comes as John Deere Move some operations The company plans to move production of skid steer loaders and compact track loaders from one of its Iowa facilities to Mexico by the end of 2026, as well as production of its 100-tonne trucks in Dubuque and San Jose, Iowa.
The company said the decision was driven by its evolving business model, its response to rising manufacturing costs and its efforts to improve operational efficiencies. Fox News reported.
Deere also announced several job cuts earlier this year.
More than 120 employees in the seeding and cylinder operations division of Moline were placed on indefinite leave effective June 28, and about 500 employees at the Waterloo, Iowa, plant were laid off, according to WQAD.
Additionally, 150 employees were laid off at the Ankeny, Iowa, plant in March, and more than 200 employees were laid off at the Harvester Works plant in East Moline in October 2023.
Farmers are buying less machinery
Dear in May Lowered full-year profit forecast It was the second decline since lower crop prices prompted farmers to cut back on purchases of tractors and other machinery.
Deere & Co., the farm-equipment maker, lowered its profit outlook to $7 billion from $7.5 billion to $7.75 billion. The company had previously expected profits of $7.75 billion to $8.25 billion in 2024.
The U.S. Department of Agriculture projects net farm income, a broad measure of profits, to be $116.1 billion in 2024, down 25.5% from a year ago. Adjusted for inflation, net farm income is expected to fall 27.1% this year as farmers struggle with lower soybean and corn prices. The USDA said declining direct government payments and higher production costs are also weighing on farmers.
The Associated Press contributed to this story.
