What’s Happening
John Deere has confirmed it will lay off 238 employees across three Midwest manufacturing facilities, citing a sharp drop in demand for farm equipment. These are the first in a series of reductions as the agricultural sector struggles with high costs and cautious capital spending. The latest round of John Deere layoffs highlights how slower equipment sales are directly impacting workers and local communities.
Which Facilities Are Affected
According to the company, the John Deere layoffs will take place at three locations:
- Harvester Works, East Moline, IL: 115 workers, last day August 29
- Seeding and Cylinder, Moline, IL: 52 workers, last day September 26
- Foundry, Waterloo, IA: 71 workers, last day September 19
Employees learned about the layoffs on August 15, and the company confirmed the figures shortly afterward.
Why It’s Happening
John Deere reports declining orders and lower farmer spending as the primary reason for the job cuts. The company’s third-quarter report shows a 16% year-over-year drop in farm and precision agriculture sales, along with a 9% decline in overall sales.
The broader agriculture equipment sector faces headwinds from inflation, rising interest rates, and uncertain markets. John Deere pointed to cautious customer behavior as a key driver behind its decision. Industry analysts note that John Deere layoffs reflect the financial strain many farmers face, reducing demand for new tractors and harvester
What Support Is Available
Affected employees will receive several benefits, including:
- Supplemental unemployment income
- Continued healthcare coverage for at least six months
- Profit-sharing options, life insurance, tuition assistance, and job placement support
Additionally, laid-off workers remain eligible for recall to their home facilities, with recalls prioritized by seniority.
What’s Next
Despite the John Deere layoffs, the company has emphasized its commitment to U.S. manufacturing. It plans to invest nearly $20 billion over the next decade to modernize and expand domestic facilities.
Industry watchers expect that unless farm incomes stabilize and producers increase capital spending, equipment demand may stay soft through the rest of the year.
Summary
The latest John Deere layoffs show how shifts in global markets, higher borrowing costs, and cautious farmer spending are reshaping the equipment industry. While the company is making long-term investments in U.S. operations, the immediate impact is being felt by workers and the rural economies that depend on them.
