John Deere, the world’s largest seller of tractors and harvesters, announced a new wave of layoffs Friday, telling about 610 production workers at plants in Illinois and Iowa that they will be out of a job by the end of the summer.
The company is cutting about 280 workers from a plant in East Moline, Illinois, while laying off another 230 workers at a plant in Davenport, Iowa. About 100 production workers at its plant in Dubuque, Iowa, will also be affected. All layoffs are set to take effect Aug. 30, the company told Fox Business.
The layoffs are being made because there is less demand for John Deere products from those factories.
The company says it made a profit of $10.166 billion last year.
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“We can confirm that Deere leadership recently communicated that rising operating costs and declining market demand require company-wide changes in the way work is done to achieve our goals and best position the company for the future,” a statement said. by John Deere.
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Employees are offered a Supplemental Unemployment Benefit (SUB), which covers approximately 95% of their weekly take-home pay for up to 26 weeks, depending on their years of service. They also get profit sharing options and health benefits.
Deere, known for its iconic green and yellow colors and leaping deer logo, 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 will move production of skid steers and compact track loaders from its Dubuque plant to Mexico by the end of 2026.
The company said the decision was due to developing its business model, addressing rising production costs and improving operational efficiency.
“This includes optimizing our factories for future products, making our operations more efficient and leveraging locations in the U.S. and globally with a growing workforce,” the company said in a statement.
In October, John Deere announced the first wave of 225 layoffs at the Harvester Works plant in East Moline. In May, another 34 production workers were laid off at the Moline Cylinder Works plant, while in March company officials announced they would lay off another 150 workers at an Ankeny, Iowa, plant that makes sprayers and cotton pickers.
About 500 employees have been laid off at the Waterloo, Iowa, plant, according to WQAD.
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A longtime John Deere employee at the Harvester Works plant in East Moline blamed the latest announcement on greed.
“We’re hearing more layoffs every day, it seems, and it’s creating uncertainty everywhere,” the worker, who asked not to be named, told The Guardian. “The only reason for Deere to do this is greed.”
Deere & Co.’s market capitalization was about $102.81 billion as of Friday evening. In mid-May, the company said it had generated $27.42 billion in net sales and revenues in the first two quarters of the year. Net income for the same period was $4.121 billion.
The company recently cut its annual profit forecast for the second time and predicted a steeper decline in sales of large farm equipment.
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Lower crop prices are leaving farm equipment sellers with a surplus of unsold tractors and combines, leading some to offer discounts and suspend new orders.
The Ministry of Agriculture has also forecast that farm income will fall 25.5% to $116.1 billion this year from 2023.
The news of layoffs comes amid a report on Wednesday that John Deere CEO John May has put his 80-acre horse farm up for sale. The asking price is set at $3.925 million, according to the listing.
Reuters contributed to this report.
Source of original article: John Deere announces mass layoffs in Midwest as production moves to Mexico
