Tractor giant John Deere faced backlash after announcing it would lay off hundreds of workers across the Midwest while continuing to operate manufacturing facilities in Mexico.
The Illinois-based company, the world’s largest distributor of large tractors and other farm equipment, notified hundreds of Iowa employees last week that they would lose their jobs.
About 100 people are expected to come from the Dubuque plant. According to Hoosier Ag Today.
John Deere announced earlier this month that it would cut 600 jobs at three facilities in Illinois and Iowa.
The company said it plans to cut 28 jobs at its plant in East Moline, Illinois, and 230 employees at its facility in Davenport, Iowa.
“As the world’s largest manufacturer of agricultural machinery, John Deere, like many other companies, faces significant economic challenges, rising operating and manufacturing costs and declining customer demand, including a 20% decline in sales from 2023 to 2024,” the company said in a statement.
Reactions on social media were scathing.
“I can’t believe that an established American company like John Deere is firing Americans to take their jobs to Mexico. This is wrong. For that alone they should be put out of business,” one X user commented.
Another X user wrote: “John Deere needs to stop pretending to be an American company and uphold American values. They are not an American company and do not do that.”
The Post has reached out to John Deere for comment.
The company announced last month that it would move production of skid steer loaders and compact track loaders from its Dubuque facility to Mexico by the end of 2026.
“We are pleased to be working with Deere to bring this technology to market,” said Corey Reid, president of Deere’s worldwide agriculture and turf business, which oversees production and precision agriculture in the Americas and Australia. He told the U.S. Agriculture Report It said its Mexican facility has been in operation for nearly 70 years and is “an important part of our global footprint.”
Reid defended the cuts, saying they were necessary to combat economic headwinds.
“Net farm income is expected to decline in the mid to high 20s, which will lead to lower commodity prices, slightly higher interest rates, more unsettled weather and uncertainty that will dampen demand,” Reid said.
“We’re experiencing that now. Looking across the industry, we expect to see roughly a 20% year-over-year decline starting in 2023.”
John Deere said it made $10.2 billion in profits last year, up 42% from 2022.
The company’s Chief Executive Officer John May’s total compensation rose to $26.7 million in 2022 from $20.3 million, according to a filing with the Securities and Exchange Commission.
Earlier this month, John Deere announced it was scaling back its diversity, equity and inclusion (DEI) efforts following a pressure campaign from conservative social media influencer Robbie Starbuck.
Meanwhile, the manufacturing boom that signaled an end to the coronavirus pandemic appears to have run out of steam, as U.S. companies brace for a prolonged recession amid rising inflation, high interest rates, rising operating costs and declining demand for goods.
Polaris, a maker of off-road vehicles and motorcycles, recently reported a 49% drop in quarterly profits, leading it to cut deliveries to dealers.
The company’s CEO, Michael Spitzen, told analysts last week that consumers are pulling back on discretionary spending.
“Retail has proven to be weaker than anyone expected,” he said.
