John Deere Lays Off 600 Employees From Its U.S. Factories

John Deere announced it will lay off about 600 employees across three US factories as the Illinois-based company shifts production to a newly planned facility in Ramos, Mexico, Eva Rothenberg reported for CNN.

The decision is the latest in a string of production layoffs by the farm equipment manufacturer over the past year. I Photo: John Deere Asia

Effective August 30, about 310 employees will be laid off at two Iowa-based plants in Dubuque and Davenport, and 280 from a factory in East Moline, Illinois.

In total, the three factories have roughly 4,175 production and maintenance employees. The Illinois factory primarily produces harvesting equipment such as combines, while the two Iowa factories manufacture construction and forestry equipment.

The decision is the latest in a string of production layoffs by the farm equipment manufacturer over the past year.

“These changes are being made due to reduced demand for the products produced at these facilities,” the company told CNN in a statement Friday. “To better position Deere to meet future demand, we continue to take proactive steps to reduce production and inventory.”

The company has reported slumping year-over-year revenue after announcing a net income of more than $10.16 billion in 2023.

In a May earnings call, executives forecast Deere’s 2024 income will be about $7 billion, citing higher production costs, lower shipment volumes, and volatile weather that has made customers more cautious in their purchasing decisions.