John Deere Cuts 600 Jobs in Midwest, Draws Criticism for Manufacturing Expansion in Mexico
John Deere, the tractor company, experienced anger after announcing plans to lay off hundreds of people across the Midwest, even though it still operates a manufacturing hub in Mexico.
The Illinois-based firm, which is the world’s largest seller of heavy tractors and other farm equipment, laid off hundreds of employees in Iowa last week.
Around 100 personnel will arrive from the Dubuque factory. Earlier this month, John Deere announced plans to slash 600 positions at three plants in Illinois and Iowa.
The corporation announced plans to remove 28 jobs at an East Moline, Illinois plant and 230 at its Davenport, Iowa location.
“As the largest global manufacturer of agricultural equipment, John Deere, like many others, faces significant economic challenges, rising operational and manufacturing costs, and reduced customer demand, including a 20 percent decline in sales from 2023 to 2024,” according to a statement from the business.
The reaction on social media was harsh.
“I can’t believe an American legacy company like @JohnDeere is laying off Americans to send those jobs to Mexico.” It’s wrong. One X user stated, “They should be out of business just for that.”
Another X user wrote: “John Deere should abandon the appearance of being an American firm and promoting American ideals. “They aren’t and don’t.”
The Post reached out to John Deere for comment.
The business said last month that it would move skid steer loader and compact track loader production from the Dubuque factory to Mexico by the end of 2026.
Cory Reed, president of Deere & Co.’s global agricultural and turf division for production and precision agriculture in the Americas and Australia, told US Farm Report that the Mexico facility has been operational for nearly 70 years and is “an important part of our global footprint.”
Reed defended the layoffs, claiming they were necessary to combat economic headwinds.
“Net farm income is expected to be down in the mid to high 20s, and when that happens, and commodity prices pull back, interest rates are a little bit higher and we see volatility in the weather, it creates uncertainty that interrupts demand,” Reed told reporters.
“That’s what we’re experiencing now. Looking across our industry, we expect to be down about 20% year on year by 2023.”
John Deere reported $10.2 billion in profits last year, a 42% rise from 2022.
According to SEC filings, the company’s CEO, John May, received $26.7 million in total remuneration, up from $20.3 million in 2022.
Following a pressure campaign by conservative social media influencer Robby Starbuck, John Deere said earlier this month that it would reduce its diversity, equality, and inclusion programs (DEI).
Meanwhile, the manufacturing boom that signaled the end of the coronavirus pandemic looks to have stalled, with American businesses prepared for a lengthy downturn due to soaring inflation, high interest rates, growing operating expenses, and lower commodity demand.
Michael Speetzen, the company’s CEO, told analysts last week that consumers have reduced discretionary spending.
“Retail has proven weaker than anyone expected,” he told me.