Deere & Co. is laying off nearly 600 workers as the farm equipment maker grapples with weak demand. Deere confirmed Monday that the production cuts are concentrated at two plants in Iowa and one at its home base in Moline, Illinois, where 280 employees will be laid off starting Aug. 30. A total of 310 workers will be laid off at Iowa sites in Davenport and Dubuque, where 211 and 99 jobs will be eliminated, respectively. Previous coverage: John Deere announces additional layoffs at Iowa sites In its second-quarter earnings release in May, Deere reported a more than 15% decline in revenue, the third straight quarter of year-over-year sales declines. Company executives said at the time that they expected further sales declines in the second half of the fiscal year and said they would continue to “take proactive steps to reduce production and inventories.” Deere & Co. reported a quarterly profit of $2.37 billion, down from $2.86 billion in the same period a year earlier, and lowered its full-year 2024 profit forecast for the second time as farmers continue to buy fewer tractors and other equipment because of lower crop prices. The U.S. Department of Agriculture forecasts 2024 net farm income, a broad measure of profits, to be $116.1 billion. That’s down 25.5% from a year earlier. Adjusted for inflation, net farm income is expected to decline 27.1% this year as farmers grapple with lower soybean and corn prices. The USDA said lower direct government payments and higher production costs are also weighing on farmers. The most recent layoffs represent about 14% of the more than 4,000 production and maintenance jobs at the three facilities. Deere employs more than 80,000 people worldwide. Shares of Deere fell 1.6% in morning trading and are down about 7.5% since the start of 2024. In early June, Deere announced it was moving its skid-steer and track loader manufacturing from a plant in Dubuque, Iowa, to Mexico by the end of 2026. The company said it was acquiring land in Ramos, Mexico, to build a new plant. At the same time, Deere informed some workers at its seeding and cylinder operations in Moline that more than 120 production employees would be furloughed indefinitely starting June 28. John Deere layoffs in Iowa Deere has laid off or plans to lay off more than 1,000 Iowa workers this year, according to Iowa WARN, a state-run layoff notice registry. The notices include several rounds of layoffs, including more than 500 workers at John Deere Waterloo Works in Waterloo, more than 130 workers at John Deere Des Moines Works in Ankeny and nearly 60 workers at John Deere Intelligent Solutions in Urbandale.
Deere & Co. is laying off nearly 600 workers as the farm equipment maker faces falling demand.
Deere confirmed Monday that the production cuts are concentrated at two plants in Iowa and one at its original site in Moline, Illinois, where 280 employees will be laid off starting Aug. 30. A total of 310 workers will be laid off at the Davenport and Dubuque, Iowa, sites, where 211 and 99 jobs will be eliminated, respectively.
Previous coverage: John Deere Announces Additional Layoffs at Iowa Sites
In its second-quarter results released in May, Deere reported a more than 15 percent drop in sales, the third straight quarter of year-over-year sales declines. Company executives said at the time that they expected further sales declines in the second half of the fiscal year and would continue to “take proactive steps to reduce production and inventory.”
Deere & Co. reported quarterly profit of $2.37 billion, down from $2.86 billion in the same period a year earlier, and lowered its full-year 2024 profit forecast for the second time as farmers continue to buy fewer tractors and other equipment because of lower crop prices.
The U.S. Department of Agriculture projects that net farm income, a broad measure of profits, will total $116.1 billion in 2024. That’s down 25.5% from the previous year. Adjusted for inflation, net farm income is expected to decline 27.1% this year as farmers struggle with lower soybean and corn prices. The USDA said lower direct government payments and higher production costs are also weighing on farmers.
The most recent layoffs represent about 14 percent of the more than 4,000 production and maintenance jobs at the three sites. Deere employs more than 80,000 people worldwide.
Deere shares fell 1.6% in morning trading and are down about 7.5% since the start of 2024.
In early June, Deere announced it would move its skid-steer and track loader production from a plant in Dubuque, Iowa, to Mexico by the end of 2026. The company said it was acquiring land in Ramos, Mexico, to build a new plant.
At the same time, Deere informed some workers at its seeding and cylinder operations in Moline that more than 120 production employees would be laid off indefinitely starting June 28.
John Deere lays off workers in Iowa
According to Iowa WARN, a state-run layoff notice registry, Deere has laid off or plans to lay off more than 1,000 Iowa workers this year. Those notices include several rounds of layoffs, including more than 500 workers at John Deere Waterloo Works in Waterloo, more than 130 workers at John Deere Des Moines Works in Ankeny and nearly 60 workers at John Deere Intelligent Solutions in Urbandale.
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