John Deere announces layoffs of 600 employees

In a recent development, John Deere has revealed plans to lay off approximately 600 production employees at three of its plants by August 30. The move affects workers at the John Deere Harvester Works plant in East Moline, Illinois, with approximately 280 employees affected, as well as the John Deere Davenport Works plant in Davenport, Iowa, where approximately 230 employees will be affected. Additionally, the John Deere Dubuque plant in Dubuque, Iowa, will see layoffs affecting approximately 100 production employees.

This announcement follows previous layoffs at various John Deere facilities, reflecting the company’s ongoing efforts to streamline its operations and adjust its workforce in response to changing market conditions. Despite reporting better-than-expected second-quarter financial results in May, John Deere lowered its full-year profit forecast due to reduced purchases of tractors and equipment by manufacturers. farmers struggling with falling crop prices.

John Deere has outlined several benefits for affected employees, including a Supplemental Unemployment Benefit (SUB), which covers up to 95% of their net weekly wages for up to 26 weeks, depending on their tenure. After the SUB payment, employees will be eligible for Transitional Assistance Benefit (TAB), covering 50% of their average weekly wages for up to 52 weeks. Additionally, profit sharing benefits will be available based on their hours worked and the company’s profit margin, provided they have completed at least one year of service by the end of the plan year.

Health benefits will also be extended, allowing employees to maintain coverage for at least six months, or longer if they remain eligible for supplemental compensation. After this period, they can choose to extend their coverage for an additional 12 months at their own expense. Additionally, John Deere provides weekly compensation (WI) benefits to employees who become disabled during their layoff period, as well as access to the Employee Assistance Program (EAP) for therapy sessions.

According to a company press release, the layoffs are in response to declining demand for Deere products at these specific plants amid continued industry sales declines. However, affected employees will have the opportunity to be recalled to their respective plants based on seniority or to new positions as they become available.