Deere cuts over 230 jobs at three Midwest factories

Deere & Co. disclosed that over 230 individuals are facing layoffs at three of its manufacturing facilities in the Midwest region, including two sites in the Quad Cities. The company issued a succinct news release on a Friday afternoon. Prior to this announcement, Deere conducted a series of meetings to directly relay this information to impacted employees.

The statement from Deere highlighted that due to a decline in demand and reduced order volumes, the affected factories would be reducing their workforce in the upcoming weeks. The breakdown of layoffs is as follows: Harvester Works in East Moline, with 115 workers, the last day of work being Friday, Aug. 29; Seeding and Cylinder in Moline, with 52 workers, the last day being Friday, Sept. 26; and John Deere Foundry in Waterloo, Iowa, with 71 employees, the last day being Friday, Sept. 19.

The layoffs were revealed soon after the company reported a net income of $1.289 billion, or $4.75 per share, for the third quarter that concluded on July 27. This marked a decrease from the net income of $1.734 billion, or $6.29 per share for the same quarter in 2024. The agriculture industry is experiencing challenges due to higher tariffs and lower commodity prices, which has resulted in diminished demand for Deere’s equipment.

Media reports from the Quad Cities on August 14 speculated that over 800 Deere workers would be laid off, citing records from the Illinois Department of Commerce & Economic Opportunity, which Deere rebuffed. On the same day, the DCEO issued an apology for misreporting over 800 layoffs at Harvester Works on its workforce portal due to an internal error, which it promptly rectified.

The statement from Deere mentioned that the ongoing struggles in the agricultural economy have a direct impact on the equipment orders it receives. Despite lower sales across various equipment divisions in the third quarter, Deere remains committed to providing its customers high-quality equipment while reiterating its support for U.S. manufacturing.

The company reiterated its commitment to maintaining a robust, competitive U.S. manufacturing presence and its plans to invest close to $20 billion over the next decade to upgrade its plants. Among the ongoing projects is a significant renovation of the Harvester Works facility. The laid-off workers will receive SUB pay weekly along with the possibility of being covered by TAB pay after the exhaustion of SUB pay. They will also have access to benefits like profit sharing, health insurance extension, life insurance, legal assistance, tuition reimbursement, and job placement assistance.