Over 600 workers are set to be impacted by layoffs at John Deere by the end of the summer. The general assumption around the recent surge of layoffs is that the issues have mainly affected only the tech industry, however, that does not appear to be the case. Apart from the John Deere factory layoff that will affect the manufacturing industry, layoffs have plagued workers right from biopharma to the food service industry. The John Deere job cuts in 2024 are certainly worrying because of the uncertain fate of the affected workers, but news of the company’s relocation of some operations over to Mexico in the next two years is also of note.
Image: John Deere
Everything You Need to Know About the John Deere Layoffs
The John Deere job cuts have been linked to reduced demand for their products and for agriculture machinery as a whole. Back in 2023, the company had predicted a decline in sales due to high interest rates and reduced demand in the overall need for agricultural equipment, and that assessment has proven to be accurate. The company had expected a 20 percent decline in sales and it was forced to adjust its full-year profit forecasts again this year.
According to Investopedia, the company had a full-year net income prediction of $7.75 billion USD to $8.25 billion USD, which it lowered to an estimate of $7.5 billion USD to $7.75 billion USD in February. Now, the full-year net income forecast stands at $7.0 billion USD, and the drop in estimates is a clear indicator of why the John Deere layoffs are necessary.
Regions Affected by the John Deere Factory Layoffs
John Deere’s layoff plans are expected to affect around 610 workers across their plants in Illinois and Iowa. These workers have already been informed about the termination of their roles and that they will be let go by August 30. According to Fox Business, 280 workers will be let go at an East Moline, Illinois plant, 230 employees will be laid off at a factory in Davenport, Iowa, and another 100 production workers will be eliminated in Dubuque, Iowa.
This isn’t the first round of John Deere’s strategic job cuts in 2024. In Iowa, the company let go of over 500 employees in Waterloo and 150 employees in Ankeny to cut down on costs. Over 120 employees in Moline were also affected by early rounds of John Deere’s layoff plans—they were placed on indefinite leave recently in June. The scale of layoffs at the historic organization has proved to be quite worrying.
Image: John Deere
John Deere is Moving Some Roles to Mexico
Back in June, the company announced that it would be relocating some jobs to Mexican facilities by the end of 2026. The jobs affected by John Deere’s move to Mexico include roles such as the manufacturing of skid steer loaders and compact track loaders. This work was reportedly done at its Dubuque facility. The company stated that the move was necessary to support its evolving business model and help the company with improving operational efficiency.
The decision has prompted some concerns about the relocation of jobs outside of the country as it takes away local opportunities for local workers who have dedicated their lives to the profession. Unemployment rates within the country are already concerning and governmental forces haven’t found a way to stabilize it just yet, however, nothing can be done about the trend of relocation of jobs if that is what it takes for a company to stay on track with its goals.
Even within the tech industry, some organizations have begun the process of moving some key roles to locations outside of the U.S. Google, for example, recently laid off at least 200 “core” employees and indicated that it would be moving some of these roles closer to key markets like India and Mexico. The long-term impact of this job shift will have to be studied carefully, but what we do know for now is that the employees being let go at John Deere are to be offered some assistance.
Fox Business has clarified that workers will receive Supplemental Unemployment Benefit (SUB) covering approximately 95 percent of their weekly net pay for up to 26 weeks, but the exact calculations will depend on their years of service at the organization. Workers will also be provided with profit-sharing options and health benefits, but we don’t know the exact nature of these proffered benefits. The plan will give workers some support to fall back on as they continue their job hunt toward their next employment opportunity.
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