John Deere announces mass layoffs in Midwest amid production shift to Mexico
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John Deere, the world’s largest seller of tractors and crop harvesters, has announced another wave of layoffs Friday, telling around 610 production staff at plants in Illinois and Iowa that they will be out of a job by the end of the summer, according to reports.
The company is slashing around 280 workers from a plant in East Moline, Illinois, while another 230 employees are being let go at a factory in Davenport, Iowa. About 100 production employees at the company’s Dubuque, Iowa, plant will also be impacted. All layoffs are said to be effective from Aug. 30, per a press release cited by several outlets.
According to the release, the layoffs are being made due to reduced demand for John Deere's products from those factories.
The company says it generated $10.166 billion in profits last year.
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A mechanized planting of seed potatoes and a John Deere tractor. (Photo by: Bill Allsopp/Loop Images/Universal Images Group via Getty Images) ( Bill Allsopp/Loop Images/Universal Images Group via Getty Images, left, Daniel Acker/Bloomberg via Getty Images, right.)
«We can confirm Deere leadership recently communicated that rising operational costs and declining market demand requires enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future,» the statement reads.
Workers are to be offered Supplemental Unemployment Benefit (SUB) which will cover about 95% of their weekly net pay for up to 26 weeks, depending on their years of service. They are also being given profit-sharing options and health benefits.
Deere, known for its iconic green and yellow
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