John Deere announces mass layoffs in Midwest amid production shift to Mexico

John Deere, a major producer of tractors and crop harvesters, has announced significant layoffs affecting over 600 production staff at plants in Illinois and Iowa. The company is cutting around 280 workers in East Moline, Illinois, 230 in Davenport, Iowa, and 100 in Dubuque, Iowa, citing reduced demand for its products. The layoffs are effective from August 30 and are part of enterprise-wide changes to address operational costs and market demand. Workers will receive benefits such as Supplemental Unemployment Benefit, profit-sharing options, and health benefits. This move follows a previous announcement of shifting manufacturing operations to Mexico by the end of 2026. John Deere's market capitalization is approximately $102.81 billion, with recent financial reports showing net sales and revenues of $27.42 billion over the first two quarters of the year. The layoffs come amidst lower crop prices impacting agricultural equipment sales and a forecasted decline in farm income. The company has adjusted its profit forecast and expects decreased sales of large agricultural equipment.