Deere announces hundreds of layoffs

Deere & Co., Moline, Illinois, is laying off nearly 600 workers due to declining demand, according to reporting by the Associated Press. The layoffs affect two factories in Iowa and one in Moline, Illinois, with 280 employees being laid off in Moline on Aug. 30 and 310 in Iowa. 

In May, Deere reported a 15% revenue decline for its second-quarter earnings, marking the third consecutive quarter of year-over-year sales declines. Executives expect further sales declines in the second half of the fiscal year and plan to reduce production and inventory. 

The company posted a quarterly profit of $2.37 billion, down from $2.86 billion the previous year, and lowered its full-year 2024 profit forecast as farmers buy fewer tractors and equipment due to declining crop prices. The U.S. Department of Agriculture, Washington, D.C., forecasts a 27.1% decline in net farm income for 2024, adjusted for inflation, driven by lower prices for soybeans and corn, reduced direct government payments and increased production costs. 

The layoffs account for about 14% of the more than 4,000 production and maintenance jobs at the three affected facilities. Deere employs over 80,000 people worldwide. Deere shares have fallen 1.6% in morning trading and are down about 7.5% since the beginning of 2024. 

Deere also announced plans to move its skid steer and track loader manufacturing from Dubuque, Iowa, to Mexico by the end of 2026 and will place over 120 production employees in Moline on indefinite leave effective June 28.