US John Deere announces upcoming layoffs at Illinois and Iowa facilities

HOUSTON (ICIS)–US equipment manufacturer John Deere has announced it is undertaking layoffs effective 3 January 2025 at facilities in Illinois and Iowa.

The company said this action is the result of reduced demand for their equipment and comes as there is more financial strain being experienced within industries they serve, especially their primary market of domestic agriculture.

“It is important to note these layoffs are due to reduced demand for the products produced at these facilities. They are not related to production moves,” said a John Deere spokesperson.

“As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy and a reduction in customer orders for our equipment.”

John Deere said it informed employees at John Deere Harvester Works in East Moline, Illinois, which impacts about 200 production positions out of its total employee count of 1,880.

The job cuts are also taking place at the John Deere Seeding and Cylinder operations in Moline, Illinois, which will involve seven production employees. The company said there is currently an estimated 625 total employees at this location.

There was also notification given at the John Deere Davenport Works in Davenport, Iowa, with about 80 production employees affected. This location has a total workforce of 1,024.

John Deere cited the US Department of Agriculture (USDA) forecast which shows major row-crop cash receipts to be down another 18% in 2024, following a 5% decline last year.

With the agency expecting marketing year average prices for the new crop, which is the acreage currently being harvested, to continue to decline from last year.

Earning revenue from construction equipment as well the company said within the construction industry single-family home sales are down 30%, single-family housing starts are down 10%, and multifamily housing starts are down 40%.

John Deere said employees are eligible to be recalled to their home factory for a period equal to their length of service, with those laid off automatically placed in seniority order for openings they are qualified to perform.

Laid-off employees will receive unemployment and assistance pay as well as their portion of profit sharing and can keep healthcare coverage under certain terms.

The company said other benefits could include life insurance, legal assistance, tuition reimbursement and job-placement assistance.