Dive Brief:
- Deere & Co. is laying off 112 workers from its Waterloo Works tractor plant in Iowa as the agriculture and construction equipment giant reduces production to better align with demand.
- The Moline, Illinois-based company notified workers of the cuts Tuesday, according to a WARN Act filing. This marks the sixth round of layoffs at the Waterloo plant this year, and Deere has eliminated more than 1,075 jobs at the facility.
- Affected workers are eligible for transitional and supplemental pay, as well as healthcare benefits, a Deere spokesperson said in an email to Agriculture Dive. They also could be called back to work when openings are available. The changes take effect Jan. 3, 2025.
Dive Insight:
Deere has aggressively cut production of its tractors as demand for new farm equipment stalls amid a difficult agricultural economy.
“As was recently stated in our fourth quarter earnings report, challenging market conditions continue to result in reduced demand for our equipment,” a Deere spokesperson said in a statement. “To remain globally competitive, we must continue making workforce adjustments as needed to our manufacturing footprint.”
With a backdrop of high interest rates, low farm incomes and weak commodity prices, borrowers are postponing large purchases, which has made it challenging for tractor dealers to move their inventory. Sales of construction equipment have also decreased as fewer families are buying new homes.
To meet reduced demand, Deere has cut more than 2,000 jobs this year, including salaried positions, with the vast majority impacting the state of Iowa.
In Iowa alone, Deere laid off more than 1,700 workers this year across plants and offices in Waterloo, Ankeny, Davenport, Dubuque, Johnston and Urbandale, WARN filings show.
The tractor giant has pointed to a weak farm economy for its sales challenges, citing forecasts from the U.S. Department of Agriculture, which estimates cash receipts from major row crops like corn and soybeans to be down another 18% this year, following a 5% decline last year. Commodity prices are also expected to be down more than 30% compared to 2022, when farm and construction equipment sales were booming.
The John Deere Waterloo plant, where the company’s largest tractors are manufactured, currently has 4,700 employees with about 2,700 working production and maintenance jobs, according to the company.
