Decline in Demand Leads to Job Cuts
A decrease in demand for agricultural machinery in certain regions of the United States has prompted manufacturer John Deere to announce layoffs in the country. The company informed employees that it will be cutting jobs at three of its U.S. facilities starting January 3, 2025.
Details of the Layoffs
In a statement to Globo Rural, the company announced that 200 employees will be laid off from the East Moline facility in Illinois; an additional 80 workers from Davenport, Iowa; and seven from the Moline plant, also in Illinois.
“It is important to note that these layoffs are due to the reduction in demand for the products manufactured at these facilities. They are not related to production changes. As we have repeatedly stated, the layoffs this fiscal year are due to the weakening agricultural economy and a decrease in customer orders,” the company stated.
Current Market Conditions
Based on data from the U.S. Department of Agriculture (USDA), John Deere noted that the average grain prices for the current harvest continue to decline compared to last year. Prices are over 30% lower than a few years ago—compared to 2022, corn prices have fallen by 37%, soybeans by 24%, and wheat by 35%.
Support for Affected Employees
The company emphasized that employees affected by the layoffs may be eligible to return to the company in the future. Additionally, there will be a financial benefits package and healthcare coverage for a specified period.
Continued Investment Amid Cuts
At the same time as these personnel cuts, the company announced an investment of $13.5 million in the expansion of the John Deere Reman Core Center, located in Strafford, Missouri. This facility is one of several John Deere Reman locations in the Springfield area. The expansion is expected to begin in mid-2025 and be completed in 2026.
