Deere announces Quad City layoffs amid economic challenges

This week, John Deere announced more layoffs in the Quad Cities. The company announced that 287 employees will lose their jobs at Harvester Works in East Moline, 80 at Davenport Works, and seven from Moline Seeding.

Deere’s ongoing workforce reductions have led to more than 900 layoffs in the Quad Cities this year, with the company clarifying that none of the cut jobs will be moved overseas.

In July, Deere also cut salaried positions, affecting an estimated 4,500 to 6,000 employees. Additional layoffs this year include:

• 134 at Seeding and Cylinder in Moline
• 211 at Davenport Works
• 279 at Harvester Works in East Moline
• 298 at Headquarters in Moline

In July, Deere attributed the layoffs at its production facilities and global salaried workforce to “significant economic challenges, rising operational and manufacturing costs, and a 20 percent drop in sales from 2023 to 2024, along with reduced customer demand.”

However, workers and the public have questioned the layoffs after John Deere announced plans to move the production of skid steer loaders and compact track loaders from its Dubuque plant to Mexico by the end of 2026. 

According to Waterloo, Iowa-based news outlet KWWL7, a group of former employees began considering a wrongful termination lawsuit, drawing on precedents set by a similar Ford Motor Company case, which alleged age discrimination. 

John Deere released a statement to Our Quad Cities News on Thursday after the layoffs were announced the day before. In it, the company states, “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. As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy and reduced customer orders for our equipment.”

The statement goes on to explain how the U.S. Department of Agriculture forecasts major row-crop cash receipts to drop another 18 percent in 2024, following a 5 percent decline last year. Additionally, marketing year average prices for new crops like corn, soybeans, and wheat are expected to fall significantly — down over 30 percent compared to 2022 levels, contributing to reduced demand for agricultural machinery.

In construction, Deere cites the downturn in the housing market, with single-family home sales down 30 percent, single-family housing starts down 10 percent, and multi-family housing starts down 40 percent since the 2021 peak. Despite some easing of interest rates, the current levels remain high compared to recent years, further dampening demand for equipment in both industries.

The company outlined current employee totals at its facilities, with Harvester Works in East Moline employing 1,880 workers, Davenport Works employing 1,024, and Seeding and Cylinder operations employing 625.

Laid-off employees will be eligible for recall based on seniority, and Deere says they are continuing support through Supplemental Unemployment pay, covering about 95 percent of weekly net pay for up to 26 weeks. Additionally, workers may receive Transitional Assistance Benefits, which provide 50 percent of weekly earnings for up to 52 weeks after SUB pay ends.

John Deere’s statement also confirms that healthcare coverage will continue for at least six months for affected workers, with the option to extend it further, while additional benefits like life insurance, legal assistance, tuition reimbursement, and the Employee Assistance Program (EAP) remain available to help employees during the transition.