John Deere announced more Waterloo, Iowa, layoffs Monday, once again citing reduced equipment demand and economic challenges.
On January 3, 112 employees at its Waterloo Works will face indefinite layoffs, adding to over 1,000 workforce reductions there already this year. Add that those elsewhere in Iowa: the Quad Cities, 287 employees at Harvester Works, 80 at Davenport Works, and seven at Moline Seeding are being let go.
The company attributes these cuts to weakening demand in agriculture and construction. The U.S. Department of Agriculture predicts an 18 percent drop in row-crop cash receipts for 2024, with significant price declines for corn, soybeans, and wheat. The housing market downturn has also impacted construction equipment demand.
Deere has faced public criticism over its plans to move some production to Mexico by 2026, despite insisting current layoffs are unrelated to production moves. Some former employees are exploring wrongful termination lawsuits, referencing age discrimination cases.
In a statement from John Deere, published by KWWL News 7, the company wrote:
“As was recently stated in our fourth-quarter earnings report, challenging market conditions continue to result in reduced demand for our equipment, with net income down $3B in FY24. To remain globally competitive, we must continue making workforce adjustments as needed to our manufacturing footprint. Today, we’ve informed employees at our Waterloo Operations that approximately 110 production employees will be placed on indefinite layoff effective Jan. 3.”
Support for affected workers includes 26 weeks of Supplemental Unemployment pay covering 95 percent of weekly earnings, followed by 52 weeks of Transitional Assistance Benefits at 50 percent. Healthcare and other benefits will continue for at least six months, with options for extension. Deere’s workforce reductions this year include both production and salaried positions, affecting up to 6,000 employees globally.
