John Deere says they plan to lay off an additional 287 workers. However, the company insists that those jobs are not being moved to Mexico, according to the Des Moines Register.
“It is important to note these layoffs are due to reduced demand for the products produced at these facilities. They are not related to production moves,” the company wrote in a statement to KWQC-TV. “As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy and a reduction in customer orders for our equipment.”
John Deere had already announced the layoffs of more than 600 employees at three production plants in Illinois and Iowa, as well as an unannounced number of salaried employees at its corporate level. The company also said it plans to move the manufacturing of skid steer loaders and compact track loaders from its Dubuque, Iowa facility to Mexico by the end of 2026.
John Deere says their sales have declined by 20 percent over the past year. Meanwhile, the stock price for Deere & Company is down 16 percent since last year.
In spite of the layoffs and reports of declining sales, John Deere generated nearly $10.2 billion in profits in 2023, while the company’s CEO, John May, received $26.7 million in total compensation in 2023 according to the company’s public filings with the Securities and Exchange Commission (SEC). May’s compensation in 2022 was listed at $20.3 million.
In early July, John Deere purchased 234 acres in northwestern Indiana with plans to build a 1.2 million-square-foot warehouse and distribution facility near Lowell in Lake County. John Deere has spent $7 million on the site, with plans for the facility to be longer on its side than the Willis Tower—formerly Sears Tower—a 110-story, 1,451-foot skyscraper in Chicago. It is estimated that the project will create approximately 1,200 union construction jobs and 400-500 permanent positions upon completion.
In September, former President Donald Trump said that if he is reelected, he will impose a 200-percent tariff on John Deere’s imports if the company follows through with its plan to move some of its production to Mexico.
