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Fury as John Deere dodges questions after laying off 1,800 US workers amid manufacturing shift to Mexico factory
John Deere has laid off even more workers - at the same time it is moving more of its tractor and farming gear manufacturing to Mexico.
The agricultural giant on Wednesday informed officials in Iowa that 103 employees - 34 in Dubuque and 69 in Waterloo- are being laid off in the state immediately.
It takes the total this year to around 1,830. They layoffs are across several Iowa sites - Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo - plus Davenport and East Moline in Illinois, as well as a research center in Urbandale.
In many instances, production that these US workers were responsible for has been shifted to new locations in Mexico.
At the start of the year, John Deere employed about 22,600 salaried and production workers across the two states.
DailyMail.com asked John Deere how many new jobs had been created in Mexico in recent years - as the US workforce has been cut. It did not answer.
In a statement, it said the reason for the layoffs is to 'position John Deere strongly for the future'.
John Deere manufactures everything from tractors, construction vehicles, mowers and even snowmobiles. The company is facing backlash over its ongoing plan to lay off increasing numbers of American workers in favor of relocating production to Mexico
Employees are furious at the cuts.
A longtime John Deere worker at the Harvester Works plant in East Moline, Illinois, said it comes down to one thing: Greed.
'We get wind of more layoffs daily, it seems, and it's causing uncertainty all over,' said the worker, who stayed anonymous for fear of retaliation.
'The only reason for Deere to do this is greed.'
The company has blamed a 20 percent fall in sales from 2023 to 2024.
Demand for tractors is down as crop prices stay low amid rising costs for farmers.
The company was founded 187 years ago.
More layoffs are expected later this year - despite John Deere raking in over $10 billion in profit in 2023 while also paying CEO John May $26.7 million in total compensation.
Laid-off workers get up to 12 months of severance pay - based on years of service - payment for unused time off, and access to health benefits.
'While the decision to reduce roles across the company was a challenging one, the company is confident that these adjustments, coupled with our ongoing efforts to reduce costs and align production and inventory levels, will position John Deere strongly for the future,' the statement added.
John Deere said it is still committed to US manufacturing. Bosses pointed to a $2 billion investment in US factories since 2019.
Iowa State University professor Peter Orazem told KWQC that the job losses will have a wider impact on other businesses in the local economy.
A John Deere factory in Brazil. The company is moving production there, as well as Mexico
Workers at a plant in Ottumwa, another tiny town in Iowa, had been expecting layoffs for two years after John Deere announced a portion of its production line would be shifted to Mexico
Inside a John Deere plant in Ottumwa, Iowa, where over 100 jobs were cut this year
More than 10,000 workers at John Deere went on strike for five weeks in 2021. They won a 10 percent raise for hourly earners and increased retirement benefits
'This is going to be a serious problem, not just because John Deere is such a large employer, but because a lot of inputs John Deere uses are produced in the area.'
He warned that suppliers to Deere might also reduce their workforce in response.
John Deere said: 'While the decision to reduce roles across the company was a challenging one, the company is confident that these adjustments, coupled with our ongoing efforts to reduce costs and align production and inventory levels, will position John Deere strongly for the future.'
History of John Deere
Portrait of John Deere, who founded the company that bears his name to this day
The company, these days almost exclusively known for its green tractors and iconic leaping deer logo, was established nearly two centuries ago in 1837.
In its early days, it produced self scouring steel plows, which revolutionized farming and replaced the inferior cast iron plow that would often get stuck in sticky soil.
Now, John Deere, which still bears its founder's name, manufactures everything from tractors, construction vehicles, mowers and even snowmobiles.
It's expanded quite a bit since its 19th century humble beginnings, boasting a total of 109 factories and offices globally.
Many of the company's dozens of factories in the US are the largest employers in small Midwest towns, making it especially devastating when dozens or even hundreds of people are suddenly out of job and don't have many places to turn.