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John Deere, the world’s largest distributor of tractors and crop harvesting equipment, announced on Friday that it would lay off about 610 production staff at plants in Illinois and Iowa by the end of the summer, according to reports.
The company is cutting about 280 jobs at its plant in East Moline, Illinois, and laying off 230 workers at its plant in Davenport, Iowa. About 100 production employees at its plant in Dubuque, Iowa, are also affected by the layoffs. All of the layoffs will take effect Aug. 30, according to a press release cited by multiple media outlets.
According to the announcement, the job cuts are being made due to declining demand for John Deere products at these plants.
The company said it made a profit of $10.166 billion last year.
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Mechanized seed potato planting and a John Deere tractor. (Photo by Bill Arrop/Loop Images/Universal Image Group via Getty Images) (Left: Bill Allsopp/Loop Images/Universal Images Group via Getty Images; Right: Daniel Acker/Bloomberg via Getty Images)
“Deere’s management has recently communicated that rising operating costs and declining market demand require enterprise-wide changes to the way we do business in order to achieve our goals and best position the company for the future,” the statement said.
Workers will be offered Supplemental Unemployment Benefits (SUB), covering around 95% of their weekly wages for up to 26 weeks depending on years of service, as well as profit-sharing options and health insurance.
Known for its iconic green and yellow colors and leaping deer logo, Deere is one of America’s oldest companies, having been founded in 1837, nearly 25 years before the start of the Civil War.
Earlier this month, Deere announced it would move production of skid steer loaders and compact track loaders from its Dubuque plant to Mexico by the end of 2026.
A John Deere 9700 forage harvester is displayed at the 2024 World Agriculture Expo in Tulare, California, on February 13, 2024. (David Swanson/Bloomberg via Getty Images/Getty Images)
The company said the decision was driven by its evolving business model, in response to rising manufacturing costs and to improve operational efficiencies.
“This includes optimizing factories for future products, making operations more efficient and leveraging our U.S. and global locations as we grow our workforce,” the company said in a statement.
John Deere in October announced the first of 225 job cuts at its Harvester Works plant in East Moline. In May, 34 production employees were laid off at its Moline Cylinder Works plant, and in March company officials said they would lay off another 150 workers at a plant in Ankeny, Iowa, that makes sprayers and cotton pickers.
About 500 employees have been laid off at the company’s Waterloo, Iowa, plant, according to WQAD.
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One longtime John Deere employee at the Harvester Works plant in East Moline blamed the announcement on greed.
“There are rumors of layoffs every day and it’s creating anxiety on all sides,” said a worker who asked not to be named. “The only reason Deere is doing this is because of greed.”
Deere Inc. had a market capitalization of about $102.81 billion as of Friday night. The company reported in mid-May that its net sales and revenues for the first two quarters of the year were $27.42 billion. Net income for the same period was $4.121 billion.
The company recently cut its full-year profit forecast for the second time, predicting a further steep decline in sales of large farm machinery.
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The larger 8RX 410 tractor with crawler tracks is on display at John Deere’s stand at Agritechnica, a major agricultural machinery trade fair in Lower Saxony, Hanover. (Julian Stratenschulte/Photo Alliance via Getty Images)
Falling crop prices have left farm-equipment dealers with piles of unsold tractors and combines, leading some to offer discounts and halt new orders.
The USDA also projects farm revenues this year to be $116.1 billion, down 25.5% from 2023.
News of the layoffs comes amid reports Wednesday that John Deere CEO John May has put his 80-acre horse ranch on the market, with the asking price set at $3.925 million.
Reuters contributed to this report.
