John Deere announces massive layoffs in Illinois and Iowa as company moves to Mexico

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MOLINE, Ill. (WTVO) — The John Deere Company announced it will lay off nearly 600 employees in Illinois and Iowa as it prepares to move to Mexico.

The tractor and combine maker said it will cut 280 jobs at its East Moline, Illinois, plant and 230 employees at a plant in Davenport, Iowa. Another 100 employees at a plant in Dubuque, Iowa, will also be cut, according to the release. Fox Company.

Affected workers have until August 30, when the layoffs will take effect.

John Deere is an iconic American brand, established in 1837. The company has announced that it will move production of skid steer loaders and compact track loaders to Mexico by the end of 2026.

According to the company, the decision was made to address increasing manufacturing costs.

“These changes are being made due to declining demand for products manufactured at these facilities,” a spokesperson said. “As noted during our second quarter earnings conference call, industry sales are expected to decline further in the second half of fiscal 2024. To better position Deere to meet future demand, we continue to take proactive measures to reduce production and inventory. »

Since October 2023, more than 1,000 workers have been laid off or given early retirement.