John Deere announces layoffs at Midwest facilities amid agricultural slowdown

Moline, IL – John Deere has announced plans to lay off 238 employees across three manufacturing plants in Illinois and Iowa, citing reduced demand and lower order volumes for its agricultural equipment. The decision follows a weaker-than-expected third-quarter earnings report and ongoing challenges in the farming sector.

The layoffs will affect workers at Harvester Works in East Moline, Seeding and Cylinder in Moline, and the Foundry in Waterloo. Employees at these facilities are scheduled to finish work between late August and late September.

The company pointed to falling commodity prices, cautious spending by farmers, and the impact of international trade tensions and tariffs as contributing factors. Tariff-related costs are projected to reach nearly $600 million this year.

Despite the workforce reductions, John Deere reaffirmed its commitment to U.S. manufacturing, with plans to invest nearly $20 billion over the next decade to modernize and expand its domestic operations. Affected employees will be eligible for recall based on seniority and qualifications and will receive supplemental income and healthcare coverage for up to six months.

John Deere’s quarterly net income fell 26% year-over-year to $1.3 billion, while net sales declined 9% to $12 billion. Analysts say the downturn reflects broader uncertainty in the agricultural economy, where farmers are increasingly opting to rent equipment rather than invest in new machinery.