John Deere is laying off more workers as production moves to Mexico.
On Wednesday. The tractor manufacturer told officials in Iowa and Illinois that it is laying off nearly 300 workers as demand declines.
About 200 manufacturing workers will be laid off in East Moline, Illinois. In addition, 80 employees in Davenport, Iowa, will lose their jobs, along with seven in Moline, Illinois.
It is the latest series of layoffs this year, after 103 jobs were also cut in July at the company founded 187 years ago.
The total this year is now around 2,100. The layoffs are happening at several locations in Iowa – Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo – plus Davenport and East Moline in Illinois, as well as a research center in Urbandale.
John Deere produces everything from tractors, combines, construction vehicles, mowers and even snowmobiles. The company is facing criticism over its ongoing plan to lay off more and more American workers in favor of moving production to Mexico
In many cases, the production for which these American workers were responsible is moved to new locations in Mexico.
But the company said Wednesday that the layoffs are not related to the move of production to Mexico.
Instead, bosses attributed the job losses to a drop in demand for tractors and other farm equipment, which was the result of falling crop prices and farmers cutting spending.
Relocation of production to Mexico has attracted the attention of politicians.
Donald Trump said in September that he will impose a 200 percent tariff on John Deere’s U.S. imports if the company goes ahead with plans to move production to Mexico.
At the beginning of the year, John Deere had approximately 22,600 employees and production workers in the two states.
Employees are furious about the cuts. A longtime John Deere employee at the Harvester Works plant in East Moline, Illinois, said it comes down to one thing: greed.
“We’re hearing of more layoffs every day, it seems, and it’s causing uncertainty everywhere,” said the employee, who remained anonymous for fear of reprisals.
“The only reason for Deere to do this is greed.”
This latest round of layoffs follows the company’s reduced annual earnings outlook announced in May.
The increased supply of crops has put pressure on grain prices, reducing the need for farmers to invest in new machinery.
The company points to a 20 percent decline in sales between 2023 and 2024.
More layoffs are expected – despite John Deere raking in more than $10 billion in profits by 2023, with CEO John May also paying $26.7 million in total compensation.
Dismissed employees receive up to twelve months of severance pay – based on years of service – compensation for unused time off and access to health benefits.
John Deere said it remains committed to American manufacturing. Bosses pointed to a $2 billion investment in US factories since 2019.
A John Deere factory in Brazil. The company is moving production there, as well as to Mexico
At a John Deere plant in Ottumwa, Iowa, where more than 100 jobs were cut this year
More than 10,000 employees at John Deere will strike for five weeks in 2021. They received a 10 percent raise in hourly wages and higher pension benefits
In a statement to DailyMail.com, John Deere said on Wednesday: ‘It is important to note that these layoffs are the result of reduced demand for the products produced at these facilities.
‘They have nothing to do with production movements. As we have stated repeatedly, this fiscal year’s layoffs are due to the weakening agricultural economy and a decline in customer orders for our equipment.”
