John Deere Announces Layoffs as Production Moves to Mexico


John Deere has announced significant layoffs at its U.S. facilities, particularly in Iowa, as part of its plan to relocate some manufacturing operations to Mexico. The company's decision is driven by rising operational costs and declining market demand, which have prompted the need for strategic adjustments to maintain competitiveness and efficiency.

The most recent announcement from John Deere revealed plans to move production of mid-frame skid steer loaders and compact track loaders from its Dubuque, Iowa, facility to a new plant in Ramos, Mexico. This shift is expected to begin in early 2026. The company has not yet disclosed the exact number of U.S. employees who will be affected by this move​.

Additionally, the Waterloo, Iowa, plant is also experiencing significant changes. The production of tractor cabs will be transferred to Mexico, continuing a trend that began two years ago.

This transition is part of Deere's broader strategy to optimize its global manufacturing footprint. The exact number of layoffs in Waterloo remains uncertain and will depend on production volumes and employee attrition over the next few years​.

In another blow to its workforce, Deere has announced indefinite layoffs for 494 employees at its Ottumwa, Iowa, plant, effective June 29, with additional periodic layoffs affecting 195 employees over the coming months. This plant manufactures balers, mower conditioners, and other agricultural equipment​​.

The broader economic context includes high interest rates and declining U.S. farm income, which are affecting Deere's financial performance. The company reported a 12% drop in worldwide net sales and revenue for the second quarter of 2024 compared to the same period the previous year.

Deere's net income for fiscal 2024 is projected to be around $7 billion, down from $10.166 billion in 2023​.

These layoffs and strategic shifts highlight the challenges Deere faces in maintaining profitability amid fluctuating market conditions and rising costs. The company's focus on reducing redundancy and optimizing production is aimed at positioning itself better for future growth, but it comes at the expense of its current workforce.


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