John Deere layoffs in Waterloo: Tractor plant to cut 112 workers

John Deere has announced another round of layoffs at its Waterloo tractor plant, reflecting the ongoing struggles in the farm economy. The company is set to lay off 112 workers effective Jan. 5, following a series of previous layoffs in 2024 that have resulted in a total of 1,075 workers being let go at the Waterloo Works facility.

This latest round of layoffs is part of Deere’s efforts to align its workforce with the decreased demand for new equipment due to farm income projections for 2025. The company currently has around 4,700 employees at the Waterloo plant, with approximately 2,700 in production and maintenance roles.

In addition to the Waterloo plant, John Deere has made significant job cuts across its facilities in Iowa, with a total of 1,702 jobs eliminated in 2024 at locations in Waterloo, Ankeny, Davenport, Dubuque, Johnston, and Urbandale. The company also offered early retirement to 103 workers at its Ottumwa plant earlier this year.

Deere attributes the layoffs to challenging market conditions that have led to reduced demand for equipment, resulting in a $3 billion decrease in net income for fiscal year 2024. The struggling farm economy, marked by lower crop prices and decreased demand for construction equipment due to declines in home sales and starts, has contributed to the company’s financial challenges.

Employees affected by the layoffs will receive support from Deere, including the opportunity to be recalled to the company for a period equal to their length of service. They will also receive supplemental unemployment pay and transitional assistance pay, covering 50% of their average weekly earnings for up to 52 weeks. Health care coverage will be maintained for at least six months, and can be extended for an additional 12 months at the employee’s expense.

John Deere, headquartered in Moline, Illinois, employs 30,000 workers at facilities across 16 states in the U.S. The company has invested over $2 billion in U.S. factories in the last five years as part of its commitment to American manufacturing.