John Deere said it plans to lay off around 600 employees across three of its Midwest factories by the end of August as it intends to focus on its operations in Mexico.
In a press release obtained by ABC Quad Cities affiliate WQAD, the company said that the factories affected by the job cuts are located in East Moline, Illinois, and Davenport and Dubuque, Iowa. Due to reduced demand for products from the three facilities, the redundancies would be effective August 30.
John Deere Moves to Mexico
NewsNation reported that John Deere's announcement followed its decision to move some of its skid steer loader and compact track loader manufacturing from its Dubuque facilities to Mexico by the end of 2026 as part of its evolving business model.
Fox Business added that the other factors affecting the company's decision include impractical manufacturing costs and operational efficiencies.
It is understood that John Deere announced the layoffs earlier this year. The latest cuts occurred last week when over 120 employees at its operations in Moline were placed on indefinite leave since June 28. Another 500 employees were also let go from its Waterloo, Iowa plant.
High Farming Equipment Supply, Low Demand
In May, John Deere lowered its full-year profit forecast for the second time in a row due to farmers buying fewer tractors and other equipment and declining crop prices.
Previously, the company had a 2024 profit forecast of between $7.75 billion and $8.25 billion. For its 2025 forecast, the manufacturer has cut its profit outlook to $7 billion.
In addition, the US Department of Agriculture anticipated that the 2024 net farm income would total $116.1 billion, 25.5% lower than the previous year.
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