John Deere, a leading manufacturer of agricultural machinery, has announced significant layoffs affecting over 600 employees at its Illinois and Iowa plants. This move comes in response to a 15% revenue decline and reduced demand for farming equipment due to lower crop prices and increased production costs.
Impact on Employees and Production
- East Moline, IL: 280 layoffs
- Davenport, IA: 230 layoffs
- Dubuque, IA: 100 layoffs
John Deere also plans to shift some production to Mexico by 2026, citing the need for operational efficiency and cost management. This restructuring aims to address ongoing financial challenges and align production with market demands.
Broader Economic Context
The layoffs represent about 14% of the workforce at these facilities. Deere’s recent earnings report shows a third consecutive quarter of declining sales, with a projected decrease in full-year profits. The USDA predicts a significant drop in net farm income for 2024, exacerbating the challenges faced by the agricultural sector.
