Deere & Co. is laying off almost 600 employees as the agricultural machinery manufacturer faces declining demand.
Deere confirmed Monday that the manufacturing positions being cut are concentrated at two plants in Iowa and one at its home base in Moline, Illinois. There, 280 workers will be laid off, effective Aug. 30. A total of 310 workers will be laid off at the Iowa locations.
In its second-quarter earnings release in May, Deere reported a sales decline of more than 15%, 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 the company would “continue to take proactive steps to reduce production and inventory.”
Deere & Co. posted quarterly profit of $2.37 billion, down from $2.86 billion in the same period a year earlier. The company also cut its full-year 2024 profit forecast for the second time, as farmers bought fewer tractors and other equipment amid falling crop prices.
The U.S. Department of Agriculture expects net farm income, which is a broad measure of profits, to total $116.1 billion by 2024. That is 25.5% less than a year earlier. 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 manufacturing and maintenance jobs at the three facilities. Deere employs more than 80,000 people worldwide.
Deere shares are down 1.6% in morning trading and are down about 7.5% since the start of 2024.
In early June, Deere announced it would move production of skid-steer loaders and track loaders from a factory in Dubuque, Iowa, to Mexico by the end of 2026. The company said it was in the process of acquiring land in Ramos, Mexico, to build a new plant.
At the same time, Deere informed some employees at its seed and cylinder operations in Moline that more than 120 production workers would be laid off indefinitely, effective June 28.
