John Deere to Lay Off 238 Workers as Equipment Demand Slows

Farm equipment giant John Deere has confirmed that it will lay off 238 employees across three manufacturing facilities in Illinois and Iowa, citing decreased demand and lower order volumes for its machinery.

The announcement follows the company’s third-quarter earnings release, which showed significant sales declines in its core farm and precision agriculture division. Deere said the downturn in the ag economy, marked by high input costs, lower commodity prices, and cautious capital spending by farmers, is weighing heavily on equipment orders.

The reductions will affect employees at three key plants:

• Harvester Works (East Moline, Ill.): 115 workers, last day August 29
• Seeding and Cylinder (Moline, Ill.): 52 workers, last day September 26
• Foundry (Waterloo, Iowa): 71 workers, last day September 19

Impacted employees were informed directly on Friday. Under Deere policy, those laid off remain eligible to be recalled to their home factory based on seniority if positions reopen.

Workers will also receive supplemental income payments, continued healthcare coverage for up to six months, and other support benefits such as profit sharing, life insurance, tuition reimbursement, and job-placement assistance.

The layoffs come as Deere’s farm and precision agriculture sales fell 16 percent year-over-year in the third quarter to $4.3 billion, while operating profit dropped 50 percent compared to 2024. Deere’s overall sales were down 9 percent, though demand for construction and lawn equipment softened the blow.

Competitors such as AGCO Corp. and CNH Industrial also reported weaker results, pointing to inflation, high interest rates, and trade uncertainty as ongoing pressures on U.S. farmers.

“Until there’s more stability in the industry, we expect customers to continue to take a measured approach to capital investment,” said Josh Beal, Deere’s director of investor relations, during the company’s Aug. 14 earnings call.

Despite the near-term challenges, Deere emphasized its commitment to U.S. manufacturing. The company has pledged to invest nearly $20 billion over the next decade to modernize and expand its facilities nationwide, including a major overhaul at Harvester Works.

“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,” the company said in its statement as reported by IPM News.

Deere’s fiscal year runs from Nov. 1 to Oct. 31.