John Deere, the world’s largest seller of tractors and combinesannounced a new wave of layoffs Friday, informing about 610 production workers at plants in Illinois and Iowa that they would be out of work by the end of the summer.
The company will lay off about 280 workers at a plant in East Moline, Illinois, while another 230 workers will be laid off at a plant in Davenport, Iowa. About 100 production workers at the plant in Dubuque, Iowa, will also be affected. All layoffs are expected to take effect Aug. 30, the company told Fox Business.
The layoffs are due to falling demand for John Deere Products of these factories.
The company says it generated $10.166 billion in profits last year.
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“We can confirm that Deere management recently communicated that rising operational costs and declining market demand require company-wide changes in how work is done to achieve our goals and best position the company for the future,” John Deere said in a statement.
Workers will be offered a supplementary unemployment benefit (SUB) that will cover approximately 95% of their weekly net salary for up to 26 weeks, depending on their years of service. They will also benefit from profit-sharing options and social benefits.
Deere, known for its iconic green and yellow colors and jumping 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 would move skid-steer and compact track loader manufacturing from its Dubuque plant to Mexico by the end of 2026.
The company said the move was driven by changes in its business model, the need to address rising manufacturing costs and improve operational efficiency.
“This includes optimizing our factories for future products, making our operations more efficient, and leveraging our locations across the United States and around the world, with a growing workforce,” a statement from the company said. ‘business.
In October, John Deere announced its first round of layoffs, 225 people, at its Harvester Works plant in East Moline. In May, 34 more production workers were laid off at its cylinder plant in Moline, while in March, company officials announced they would lay off another 150 workers at a plant in Ankeny, Iowa, that makes sprayers and cotton pickers.
About 500 employees were laid off at its 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.
“It seems like every day we hear about new layoffs, and it creates uncertainty,” the worker, who asked not to be named, told the Guardian. “The only reason Deere is doing this is greed.”
Deere & Co. market capitalization The company’s revenue was $102.81 billion as of Friday evening. In mid-May, the company reported $27.42 billion in sales and net income in the first two quarters of the year. Its net income for the same period was $4.121 billion.
The company recently lowered its annual profit forecast for the second time and expects a steeper decline in sales of large farm equipment.
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Falling 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 Agriculture Department also forecast that farm incomes would fall 25.5% to $116.1 billion this year compared with 2023.
News of layoffs arrives amid a report released Wednesday John Deere CEO John May has listed his 80-acre horse farm for sale. His asking price has been set at $3.925 million, according to the listing.
Reuters contributed to this report.
Original source of the article: John Deere announces massive layoffs in the Midwest due to production shift to Mexico
