John Deere is laying off even more workers as it moves manufacturing to Mexico.
On Wednesday. The tractor maker told officials in Iowa and Illinois that nearly 300 workers are being laid off due to falling demand.
About 200 production workers will be laid off in East Moline, Illinois. Additionally, 80 workers in Davenport, Iowa, will also lose their jobs, along with seven in Moline, Illinois.
This is the latest round of layoffs this year, after 103 jobs were also eliminated in July at the company founded 187 years ago.
The total this year is around 2,100. The layoffs occur at several sites in Iowa (Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo) as well as Davenport and East Moline in Illinois, as well as at a research center in Urbandale.
John Deere makes everything from tractors, combines, construction vehicles, lawn mowers, and even snowmobiles. The company is facing backlash over its ongoing plan to lay off a growing number of American workers in favor of moving production to Mexico.
In many cases, the production for which these American workers were responsible is moving to new locations in Mexico.
But the company said Wednesday that the layoffs are not related to moving its production to Mexico.
Instead, bosses attributed the job cuts to a decline in demand for tractors and other farm equipment, which has resulted from falling crop prices and farmers’ reduced expenses.
The movement of production to Mexico has caught the attention of politicians.
Donald Trump said in September that he will impose a 200 percent tariff on John Deere imports to the United States if the company moves forward with plans to move production to Mexico.
At the beginning of the year, John Deere employed about 22,600 salaried and production workers in the two states.
Employees are furious about the cuts. A former John Deere worker at the Harvester Works plant in East Moline, Illinois, said it all comes down to one thing: greed.
“It seems like every day we hear about more layoffs and this is creating uncertainty everywhere,” said the worker, who remained anonymous for fear of retaliation.
“The only reason Deere does this is greed.”
This latest round of layoffs follows the company’s reduced annual profit outlook announced in May.
Rising crop supplies have put pressure on grain prices, leaving farmers with less to invest in new machinery.
The company has targeted a 20 percent drop in sales from 2023 to 2024.
More layoffs are expected, even though John Deere made more than $10 billion in profits in 2023 and also paid CEO John May $26.7 million in total compensation.
Laid-off workers receive up to 12 months of severance pay (depending on years of service), pay for unused time off, and access to health benefits.
John Deere said it is still committed to American manufacturing. Bosses pointed to a $2 billion investment in U.S. factories since 2019.
A John Deere factory in Brazil. The company moves its production there, as well as to Mexico.
Inside a John Deere plant in Ottumwa, Iowa, where more than 100 jobs were cut this year
More than 10,000 John Deere workers went on strike for five weeks in 2021. They won a 10 percent raise for hourly workers and increased retirement benefits.
In a statement to DailyMail.com on Wednesday, John Deere said: ‘It is important to note that these layoffs are due to reduced demand for the products produced at these facilities.
‘They are not related to production movements. As we have said repeatedly, this fiscal year’s layoffs are due to the weakening agricultural economy and reduced customer orders for our equipment.’
