MOLINE, Ill. — Farm equipment maker John Deere confirmed it will lay off 23 across t
Company officials say the slowdown in the farm economy, lower commodity prices, and ongoing tariff costs have all contributed to the cutbacks.
“This is a challenging time for many farmers, growers, and producers, and it directly impacts our business,” Deere said in a statement.
Where the layoffs are happening
- Harvester Works in East Moline, Illinois: 115 employees, last day August 29
- Seeding and Cylinder in Moline, Illinois: 52 employees, last day September 26
- Foundry in Waterloo, Iowa: 71 employees, last day September 19
Workers who lose their jobs may be eligible for recall if demand picks up again. Deere also said affected employees will continue to receive benefits depending on their length of service.
Company’s financial strain
Deere reported a 26% drop in quarterly profit, with net income falling to $1.3 billion. Sales fell 9% to $12 billion.
The company also noted tariffs have added hundreds of millions in costs. According to Investor Relations Director Josh Beale, Deere expects about $600 million in tariff expenses this fiscal year, up from earlier estimates of $500 million.
Industry-wide challenges
John Deere isn’t alone. Competitors AGCO and CNH Industrial also reported weaker sales tied to tariffs and farmer caution.
“Tariff uncertainty and low commodity prices have made farmers very careful about spending,” said Jonathan Sakraida, analyst at CFRA Research.
Looking ahead
Despite the layoffs, Deere stressed it is still committed to its U.S. operations. The company has pledged $20 billion in investments over the next decade to modernize and expand its American factories.
“We believe demand for high-quality farm equipment will return,” the company said. “And when it does, we’ll be ready.”
