John Deere announces another round of layoffs

John Deere, the iconic agricultural and construction equipment manufacturer, is set to implement another round of layoffs as part of ongoing workforce adjustments. According to the latest report from the Iowa Workforce Adjustment and Retention Notification (WARN) system, approximately 80 workers at the Davenport Works facility will be let go after the holiday season, with layoffs scheduled to begin on January 3, 2025. Just days later, an additional 112 employees at the company’s Waterloo Works plant will face the same fate, effective January 6, 2025.

These cuts follow a series of reductions earlier in 2024. In total, over 2,000 employees have been laid off across John Deere’s facilities in Iowa and beyond, including significant cuts in Waterloo, Moline, Dubuque, and other locations. Notably, the company has already eliminated 1,702 jobs in Iowa alone, with Waterloo, the company’s largest manufacturing plant, particularly hard-hit. The latest wave of cuts marks the sixth layoff at the Waterloo facility this year, signaling a difficult period for the company.

The layoffs come against a backdrop of weak market conditions for Deere & Co., which reported a sharp decline in its financial performance. In its Q4 2024 earnings report, Deere posted a net income of $1.245 billion, down from $2.369 billion in the same period in 2023. For the fiscal year, net income was $7.1 billion, a notable decrease from the $10.2 billion reported in fiscal 2023. The company now forecasts a more conservative 2025 net income range of $5 to $5.5 billion.

Agricultural conditions have also worsened, with USDA projections indicating a 25.5% drop in net farm income in 2024, further dampening demand for Deere’s machinery. Amidst this challenging economic landscape, Deere has been forced to reduce its production of tractors, as demand for new farm equipment stalls. Deere’s spokesperson acknowledged the ongoing challenges, noting that adjustments to the workforce and manufacturing footprint are necessary to maintain global competitiveness.

John Deere has also come under scrutiny for its plans to shift some production to Mexico by 2026. While the company insists that recent layoffs are not directly linked to this move, the shift has generated criticism, especially from political figures like President Donald Trump, who has threatened a 200% tariff on farm machinery imported from Mexico. Despite these tensions, Deere remains firm in its stance, arguing that the decisions are essential for staying competitive in the global market.

Alongside its workforce reductions, Deere continues to promote innovations in agricultural technology. The company highlighted the success of its See & Spray technology, which uses machine learning to target weeds in a more efficient, sustainable way. Deere reported that the technology, developed after its $305 million acquisition of Blue River Technologies in 2017, was used on over 1 million acres of farmland in 2024, resulting in an estimated savings of 8 million gallons of herbicide mix. The technology is seen as part of Deere’s broader strategy to position itself as a leader in precision agriculture, even as it faces economic and public relations challenges.

Deere’s ongoing layoffs and production cuts reflect the broader difficulties faced by the agricultural machinery industry, where high interest rates, reduced farm income, and low commodity prices have led to a decline in equipment sales. Deere’s financial outlook for 2025 suggests that the company will continue to face challenges, and further workforce reductions may be on the horizon if market conditions do not improve.