John Deere has officially announced further employee reductions as part of its global workforce downsizing efforts, as reported by the Corridor Business Journal. Details on the exact number of affected salaried employees have not been released by the company. This follows previous announcements of over 600 production worker layoffs at its Illinois and Iowa facilities, with no specific dates provided for the additional cuts to salaried positions
John Deere, the world’s leading producer of agricultural machinery, cited severe economic challenges such as rising operational and production costs and a 20% sales decline from 2023 onwards into 2024 as reasons for the workforce adjustments.
Employees affected by these layoffs are eligible for severance packages which can last up to 12 months, based on service length. They will also receive compensation for unused vacation and paid leave, among other benefits.
Earlier in July, about 610 production staff at the company’s Illinois and Iowa plants were informed of their impending job loss by the end of the summer. The East Moline, Illinois plant will see approximately 280 job cuts, with another 230 positions being eliminated at the Davenport, Iowa plant. An additional 100 jobs at the Dubuque, Iowa facility are also being reduced.
The company stated that these layoffs are necessary due to a decline in demand for its products made in some Iowa and Illinois locations. Meanwhile, John Deere also revealed a shift in its manufacturing strategy, planning to move the production of mini-loaders and compact track loaders from its Iowa plant to Mexico by the end of 2026.
In a recent development, John Deere acquired 234 acres in Lowell, Indiana, for a new 1.2 million square foot warehouse and distribution center, costing $7 million. This new facility will extend beyond the length of Chicago’s Willis Tower.
For fiscal year 2023, John Deere reported profits close to $10.2 billion. CEO John May’s total compensation for 2023 was $26.7 million, an increase from $20.3 million in 2022, according to filings with the Securities and Exchange Commission.
