John Deere lays off 141 workers at 2 Iowa facilities
Company cited ‘decreased demand and lower order volume’
John Deere is laying off 141 workers at Iowa facilities amid sluggish farm equipment sales and a restructuring of its manufacturing footprint.
The company on Sept. 17 announced layoffs of 101 employees at its Waterloo plant, effective Oct. 17, and 40 at the Des Moines Works facility in Ankeny, effective Oct. 31.
The decision reflects “decreased demand and lower order volumes,” a John Deere spokesperson told Equipment Finance News in a written statement.
“As is common in manufacturing, production schedules at each John Deere factory vary to align with seasonal farming needs,” the spokesperson said. “When fewer orders come in, each factory adjusts accordingly. Throughout this process we remain focused on providing customers the high-quality equipment they depend on, while investing to strengthen the foundations of U.S. manufacturing.”
The Moline, Ill.-based company has laid off 331 workers in Iowa this year, including 71 at the Waterloo factory last month, according to WARN notices from the Iowa Workforce Development.
To keep a “strong, viable and competitive” manufacturing footprint in the United States, the company is “investing nearly $20 billion over the next decade to upgrade and enhance manufacturing facilities across the country,” the spokesperson said. “This is on top of recent U.S. investments to open new facilities and expand/modernize others.”
Meanwhile, Deere reported a 16.2% year-over-year decline in production and precision agriculture net sales in its fiscal third quarter, which ended July 31, citing “high interest rates, elevated used inventory levels in late-model year machines and trade uncertainty.”
The company projects large agricultural equipment sales to dive 30% in fiscal 2025 and small agriculture segment sales to fall 10%.
Despite decreased equipment sales, John Deere Financial’s net income rose 34% YoY in fiscal Q3 while revenue dropped 4.8% YoY.
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