DUBUQUE, Iowa — John Deere employees at three Iowa locations were notified of layoffs effective immediately on Wednesday, July 24, according to the State of Iowa's WARN website.
69 employees were laid off at John Deere Waterloo Works, 67 were laid off at John Deere Financial in Johnston and 34 were laid off at John Deere Dubuque Works. The WARN website states that those 170 employees received notice of the layoffs on Wednesday, which took effect immediately.
On Wednesday, Deere announced that it was making workforce reductions related to salaried employees.
Below is the statement in full:
As the largest global manufacturer of agricultural equipment, John Deere, like many others in our industry, faces significant economic challenges, rising operational and manufacturing costs, and reduced customer demand, including a 20 percent decline in sales from 2023 to 2024.
- This reduction in product demand and increased operational costs have unfortunately forced us to make tough decisions including layoffs at John Deere production facilities and reductions in our global salaried workforce.
We are committed to providing assistance and benefits to affected salaried employees. As part of this pledge, we are extending the following support to affected salaried employees in the U.S.:
- Up to 12 months of severance based on years of service
- Pro-rated short-term incentive (STI) and long-term incentive cash (LTIC) compensation benefits
- Payment for any earned and unused vacation or paid time off and other factors
- Access to ongoing health and wellness benefits and 12 months of professional job placement services
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.
Previous reporting:
John Deere appears to be moving forward in laying off salaried members of its workforce, according to multiple reports on the social platform Reddit. The online posts come after Deere previously confirmed to News 8 in late June that "salaried layoffs in the U.S. are expected to occur by the end of July." News 8 has reached out to Deere for confirmation on the recent reports.
Numerous posts reference an email allegedly sent by John Deere executives outlining how the layoffs will take place, including one post with screenshots that has since been deleted. That alleged email states that on Wednesday, July 24, Deere will begin "additional global salaried workforce reductions." All salaried employees who do not have to be onsite are being asked to work from home July 24-26 so those being let go can "hear and digest the news in private."
The alleged email also says that after a meeting on July 24, employees being laid off will receive more information on their severance offers and separation details.
In the last three months, John Deere has laid off more than 1,000 employees across the company. It most recently includes around 345 production employees at its Waterloo facilities. Deere attributes the layoffs to a need to balance its workforce amid reduced product demand and "rising global operational and manufacturing costs."
A Deere spokesperson has previously said that "employees are eligible to be recalled to their home factory for a period equal to their length of service" and that laid-off employees receive automatic seniority for openings they are qualified for.
Laid-off employees also receive supplemental unemployment pay for up to 26 weeks, depending on how long they've worked with the company. Deere says this covers about 95% of their weekly pay when combined with state unemployment benefits. Additional health care and transitional assistance are available for laid-off employees based on how long they worked for the company.
