Ag equipment sales dip prompts layoffs at John Deere

John Deere is laying off workers across three factories in Illinois and Iowa, citing challenging market conditions that have negatively affected product demand. Roughly 600 workers are expected to be laid off by the end of August, according to multiple news reports.

Photo: KHL Staff

The latest layoffs are intended to proactively scale back production and better align inventory levels of equipment with demand forecasts. The agricultural sector has been especially hard hit by declining commodity prices and high interest rates, resulting in expectations for further declines in ag equipment sales for the second half of 2024.

According to the reports, more than 300 production employees (combined) at John Deere Davenport Works and John Deere Dubuque Works in Iowa and just under 300 employees at John Deere Harvester Works in East Moline, Ill., will be affected. Reports noted a reduction of salaried employees is slated by this fall, as well.

The latest move adds to the 800+ workers previously laid off from three other Iowa-based plants and a tech center earlier this year. According to the company, the strategy is to optimize its factories for future products, improve operating efficiency and take advantage of national and global locations with a growing labor force.

John Deere employs over 80,000 employees at more than 100 locations globally.