Deere Expands Layoffs with 345 Workers Cut in Iowa
Deere & Co. is set to lay off an additional 345 employees at its Waterloo, Iowa, facility due to a continuing decline in equipment sales, a spokesperson confirmed to Agriculture Dive. This latest round of layoffs contributes to the hundreds of jobs the agricultural machinery manufacturer has already eliminated over the past year.
Starting on September 20, the layoffs will be part of a broader trend of workforce reductions affecting the agricultural equipment sector amid a significant drop in market demand. Alongside the cuts in Waterloo, Deere will also be reducing its workforce by seven positions at its Coffeyville Works factory in Kansas, with this change taking effect on August 9. This facility is known for producing transmissions, axles, and other drivetrain components.
“These measures are being adopted due to decreased demand for products manufactured at these locations,” the spokesperson stated. To assist the laid-off employees, the company is providing unemployment benefits, transitional support, and various other assistance programs.
Since the beginning of this downsizing initiative, Deere has informed over 1,500 workers about job cuts in its production plants in Illinois and Iowa alone. The company has recently faced challenges with excess inventory, as demand dwindles and farmers’ incomes decrease, prompting production slowdowns and job cuts to stabilize its operations.
The Waterloo plant is responsible for assembling some of Deere’s largest tractors, including the 7, 8, and 9 Series, employing approximately 5,000 staff members. Nationwide, Deere has an estimated workforce of around 30,000 across 40 sites in various states.
Looking to the future, Deere anticipates a potential reduction in industry sales by as much as 20% globally compared to last year. According to the company’s second quarter earnings report, demand is expected to gradually decrease throughout 2024.
In addition to these layoffs, Deere has faced criticism over its plans to shift some production from the Dubuque Works factory in Iowa to Mexico by 2026, as reported by local news outlet Telegraph Herald. Despite the ongoing downturn in customer demand, a company representative reaffirmed Deere’s commitment to maintaining U.S.-based manufacturing.
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Maria Sanchez completed her Bachelor’s degree in Plant Sciences from the University of California, Davis, in the USA. Her studies focused on plant genetics and biotechnology, with an emphasis on developing disease-resistant crop varieties. Maria has contributed to several research projects aimed at improving crop resilience to climate change and is now pursuing her Master’s degree in Plant Breeding.