Fury as John Deere dodges questions after laying off 1,800 US workers amid manufacturing shift to Mexico factory
John Deere has laid off even more workers while moving more of its tractor and farm equipment production to Mexico.
The agricultural giant told Iowa authorities on Wednesday that 103 employees — 34 in Dubuque and 69 in Waterloo — are being laid off immediately in the state.
That brings the total this year to about 1,830. The layoffs will occur at several locations in Iowa — Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo — plus Davenport and East Moline in Illinois, as well as a research center in Urbandale.
In many cases, the production that these American workers were responsible for has been moved to new locations in Mexico.
At the beginning of this year, John Deere employed approximately 22,600 payroll and production employees in the two states.
DailyMail.com asked John Deere how many new jobs have been created in Mexico in recent years – as the U.S. workforce has shrunk. It did not answer.
A statement said the layoffs are intended to “strongly position John Deere for the future.”
John Deere makes everything from tractors, construction vehicles, mowers and even snowmobiles. The company is facing backlash over its ongoing plan to lay off more and more American workers in favor of moving production to Mexico.
Employees are furious about the cuts.
A longtime John Deere employee at the Harvester Works plant in East Moline, Illinois, says it comes down to one thing: greed.
“It seems like we are hearing about more layoffs every day and that is creating uncertainty,” said the employee, who asked to remain anonymous for fear of reprisals.
“Deere is only doing this out of greed.”
The company attributes this to a 20 percent drop in sales from 2023 to 2024.
Demand for tractors is falling as agricultural prices remain low and costs for farmers rise.
The company was founded 187 years ago.
More layoffs are expected later this year, despite John Deere making more than $10 billion in profits in 2023 and paying CEO John May a total of $26.7 million in compensation.
Employees who are laid off will receive up to 12 months of severance pay (based on years of service), payment for unused time off, and access to health insurance.
“While the decision to reduce positions within the company was a difficult one, the company is confident that these adjustments, combined with our ongoing efforts to reduce costs and align production and inventory levels, will position John Deere for the future,” the statement said.
John Deere said it remains committed to U.S. manufacturing, with bosses pointing to a $2 billion investment in U.S. factories since 2019.
Professor Peter Orazem of Iowa State University told KWQC that job losses will have a greater impact on other businesses in the local economy.
A John Deere factory in Brazil. The company is moving production there, as well as to Mexico
Workers at a factory in Ottumwa, another small Iowa town, had been expecting layoffs for two years after John Deere announced it would move part of its production line to Mexico
Inside a John Deere factory in Ottumwa, Iowa, where more than 100 jobs have been cut this year
More than 10,000 John Deere workers went on strike for five weeks in 2021, winning a 10 percent pay increase for hourly workers and increased pension benefits
“This is going to be a serious problem, not only because John Deere is such a large employer, but also because many of the inputs that John Deere uses are produced in the region.”
He warned that Deere’s suppliers may also cut their workforces.
John Deere said: ‘While the decision to reduce the number of positions within the company was a difficult one, the company is confident that these adjustments, combined with our ongoing efforts to reduce costs and align production and inventory levels, will position John Deere for the future.’
History of John Deere
Portrait of John Deere, who founded the company that still bears his name today
The company, known today almost exclusively for its green tractors and iconic leaping deer logo, was founded almost two centuries ago, in 1837.
In its early years, the company produced self-cleaning steel plows, which revolutionized agriculture by replacing the inferior cast iron plow that often got stuck in sticky soil.
Today, John Deere, which still bears its founder’s name, produces everything from tractors, construction vehicles, lawn mowers and even snowmobiles.
Since its modest beginnings in the 19th century, the city has expanded considerably and now has 109 factories and offices worldwide.
Many of the company’s dozens of factories across the U.S. are the largest employers in small Midwestern towns, so it could be a huge blow if dozens or even hundreds of people suddenly lost their jobs and didn’t have many people to turn to.