John Deere Lays Off More Iowa Employees—Deere Will Move Some Operations to Mexico by 2026

John Deere will reportedly lay off 112 additional production workers in Waterloo, Iowa. The upcoming round of layoffs, which will go into effect in January, follows the hundreds of employees that were recently laid off at John Deere plants in Illinois and three cities in Iowa— Waterloo, Dubuque, and Davenport.

The company released the following statement: "As was recently stated in our fourth quarter earnings report, challenging market conditions continue to result in reduced demand for our equipment. To remain globally competitive, we must continue making workforce adjustments as needed to our manufacturing footprint. Today, we've informed employees at our Waterloo Operations that approximately 110 production employees will be placed on indefinite layoff effective Jan. 3."

During the summer, the company announced the layoff of 600 production employees throughout Iowa and one plant in Illinois. According to Deere, the layoff resulted in a drop in product demand. According to Hoosier AG Today, the company also plans to move the manufacturing of skid steer loaders and compact track loaders from its Dubuque, Iowa, facility to Mexico by the end of 2026. It's undetermined how many jobs will be impacted by the move to Mexico.

In August, Rep. Eric Sorensen (D-IL-17), representing the congressional district where John Deere's corporate headquarters are located, expressed his disappointment with the tractor giant's decision to lay off its employees. In statements obtained by the Hoosier AG Today, Sorenson stated, "I'm really frustrated because I don't believe that Deere and Company is being forthcoming about their plans for the future."

Rep. Eric Sorensen. Photo/SenGov

Representative Sorenson expressed more concerns with the company's decision to downsize. He pointed out that John Deere generated nearly $10.2 billion in profits in 2023, while the company's CEO, John May, received $26.7 million in total compensation in 2023, according to the company's public filings with the Securities and Exchange Commission (SEC). May's compensation in 2022 was listed at $20.3 million.

Sorenson continued, "There are challenges in the ag economy, but John Deere has been effective in making a profit for its shareholders. "Looking forward, we have to understand that it is a profitable company, and John Deere and Company is not going out of business. "In August, Sorenson said, "That's the thing that's concerning for me because I don't believe that we're at the end of the Deere and Company's layoff period."

John Deere currently has operations and production sites in Mexico: Monterrey, Ramos Arizpe, Saltillo, and Torréon. Sorensen said continued layoffs in the United States, which send manufacturing jobs to Mexico, could have a crippling effect on the U.S. ag economy—"We need to know where the future of Deere and Company is going and we need to know that the future of agriculture in our country has an American-made John Deere being a part of that," says Sorensen.

However, the HAG reported, 'In early July, John Deere purchased 234 acres in northwestern Indiana with plans to build a 1.2 million-square-foot warehouse and distribution facility near Lowell in Lake County. John Deere has spent $7 million on the site, with plans for the facility to be longer on its side than the Willis Tower—formerly Sears Tower—a 110-story, 1,451-foot skyscraper in Chicago. The project is estimated to create approximately 1,200 union construction jobs and 400-500 permanent positions upon completion.

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