John Deere is announcing another round of layoffs at three of its facilities on Friday, August 15th.
In a media statement, the Moline-based tractor manufacturer cited decreased demand and lower order volumes for workforce reductions in East Moline, Moline, and Waterloo.
115 employees at Harvester Works in East Moline will leave the company on August 29th. 52 workers at Moline’s Seeding and Cylinder site leave on September 26th. And, 71 employees at the Foundry in Waterloo will lose their jobs on September 19th.
John Deere says all employees will receive monetary and healthcare benefits.
The Illinois Department of Commerce and Economic Opportunity issued an apology on Friday, August 15th, for incorrectly reporting more than 800 layoffs at the Harvester Works on Thursday, August 14th. That facility has seen a workforce reduction of over 1,000 since 2023.
This comes amid the company's recent earnings report.
Higher tariffs and lower crop prices are dampening demand for John Deere equipment as the company says many of its customers "remain cautious" about the economy.
Moline’s tractor maker reported a 9 percent decline in quarterly revenue on Thursday. It’s also projecting $600 million in pretax costs due to tariffs for the year, mainly due to trade with Europe and India, as well as duties on steel and aluminum.
Complete statements from the DCEO and John Deere are below.
Illinois DCEO: "There was an internal error, which has now been corrected. We sincerely apologize for the oversight, and we are evaluating our processes to ensure a similar error does not occur in the future. We appreciate members of the media bringing this to our attention."
John Deere: "As stated on our most recent earnings call, the struggling ag economy continues to impact orders for John Deere equipment. This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.
As the entire ag sector navigates these challenges, John Deere continues to provide customers the high-quality equipment they deserve while strengthening the foundations of U.S. manufacturing.
We remain committed to keeping our U.S. manufacturing footprint strong, viable and competitive. We are investing nearly $20 billion over the next decade to upgrade and enhance manufacturing facilities across the country. This is on top of recent U.S. investments to open new facilities and expand/modernize others.
Due to decreased demand and lower order volumes, the following factories will be implementing workforce reductions in the coming weeks. Affected employees were informed today.
Facilities involved include:
- Harvester Works in East Moline, Ill.: 115 (last day of work Aug. 29)
- Seeding and Cylinder in Moline, Ill.: 52 (last day of work Sept. 26)
- Foundry in Waterloo, Iowa: 71 (last day of work Sept. 19)
Additional information
- Affected employees are eligible to be recalled to their home factory for a period equal to their length of service. Those laid off are automatically placed in seniority order for openings they are qualified to perform at the factory.
- Laid-off employees will receive the following monetary benefits:
- Weekly supplemental employment benefit (SUB Pay), which is dependent on their number of years of continuous employment.
- Transitional Assistance (TAB) pay, which may cover up to 50% of their average weekly earnings for up to 52 weeks, after SUB pay is exhausted.
- Profit Sharing, which is calculated based on their hours worked, average earnings, and the company's profit margin, if they have at least one year of service by the end of the plan year.
- Healthcare benefits that employees can receive during a layoff include:
- Employees can keep their healthcare coverage for at least six months, or as long as they are eligible for SUB pay, whichever is longer. After that, they can extend their coverage for another 12 months, but they have to pay the full premiums themselves.
- Weekly Indemnity: Employees who become disabled while on layoff can get WI benefits for the same duration as their SUB pay, if they meet the requirements.
- Employee Assistance Program: Employees and their household members can access EAP services for the duration of their recall rights. EAP provides up to eight sessions of in-person or virtual therapy per year.
- Other benefits laid-off employees may receive include:
- Life insurance, legal assistance, tuition reimbursement and job-placement assistance. "
