John Deere Continues Cuts with Additional Layoffs Across Iowa
John Deere is facing significant backlash following its decision to implement further layoffs across multiple locations in Iowa and Illinois. By the end of this month and into September, the company plans to cut a total of nearly 1,600 jobs in Iowa alone, contributing to a broader wave of layoffs across the Midwest
According to the Iowa Worker Adjustment and Retraining Notification Act (WARN), the latest round of layoffs will see around 99 employees let go from John Deere’s Dubuque plant on August 30th, with an additional 211 employees from Davenport being laid off on the same day. The cuts will continue into September, with three locations in Waterloo set to eliminate a total of 345 positions on September 20th. These layoffs follow previous job cuts announced earlier this summer, including 600 positions across three production plants in Illinois and Iowa.
John Deere, the world’s largest manufacturer of large tractors and other farm equipment, cites economic challenges as the driving force behind these decisions. The company has pointed to a 20% decline in sales from 2023 to 2024, rising operational costs, and reduced customer demand as key factors necessitating these cuts. Despite these challenges, John Deere remains highly profitable, reporting $10.2 billion in profits last year, a 42% increase from 2022. Additionally, CEO John May’s compensation grew to $26.7 million in 2023, up from $20.3 million the previous year.
Adding to the controversy, John Deere has announced plans to shift the manufacturing of skid steer loaders and compact track loaders from its Dubuque facility to Mexico by the end of 2026. This decision, coupled with the ongoing layoffs, has sparked criticism from the public and political figures alike, who are concerned about the long-term impact on the U.S. agricultural economy.
While John Deere continues to make investments, such as its recent purchase of 234 acres in northwestern Indiana for a new warehouse and distribution facility, the company’s ongoing restructuring efforts have raised concerns about its commitment to American workers and the future of its operations in the Midwest as a whole. As the manufacturing boom that followed the pandemic loses steam, John Deere’s recent actions signal the challenges ahead for both the company and its dwindling workforce.
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