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John Deere Announces Layoffs Of Over 800 Employees
https://www.whatjobs.com/news/usa/us-employment-news/john-deere-announces-layoffs-of-over-800-employees
By Nithya Bose in Business News, posted July 3, 2024
John Deere will lay off 813 employees from its Iowa and Illinois plants due to inflation and decreasing demand as agricultural prices fall.
According to Iowa's Worker Adjustment Retraining and Notification (WARN) website, 211 employees will be cut from the Davenport plant and 99 from the Dubuque plant, effective from August 30.
In Illinois, the WARN site reported 503 layoffs at the East Moline plant, effective September 30.
These layoffs follow John Deere's earlier announcement of 835 job cuts across its plants in Waterloo, Ankeny, and Ottumwa.
More cuts will be made as well as its tech center in Urbandale.
The company, headquartered in Moline, Illinois, did not respond to requests for comment from the Register.
However, it told Fox Business rising operational costs and declining market mean changes to achieve its goals and position the company for the future.
John Deere assured Fox Business affected employees would receive supplemental unemployment benefits, covering about 95 percent of their weekly net pay for up to 26 weeks, based on their years of service.
They will also be offered profit-sharing options and health benefits.
211 employees will be cut from the Davenport plant, 99 from the Dubuque plant as well as 503 layoffs at the East Moline plant
In May, Josh Beal, Deere's investor relations director, informed analysts that the company expects global farmers to reduce spending over the next six months.
In April, US Department of Agriculture economists projected that corn, wheat, and soybean prices would drop this year, resulting in a 26 percent decrease in farm income compared to last year.
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Beal noted that John Deere would implement "planned underproduction," producing fewer machines than the market demands.
In 2023, John Deere listed 82,200 employees on its website at over 100 global locations.
The company said it aims to optimize factories for future products, enhance operational efficiency, and leverage locations with a growing labor force, both in the US and globally.
Iowa State University economist Chad Hart noted that Deere is reorganizing to gain labor cost efficiencies, referencing a 2021 strike that led to significant concessions from the company.
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