MOLINE, Ill. — Over 300 salaried John Deere employees were laid off in Illinois last week on July 24. It comes after Deere confirmed in late June that it would be reducing its salaried workforce by the end of July.
A total of 298 employees at John Deere World Headquarters in Moline and 21 employees at Harvester Works in Moline were laid off, according to emails obtained by News 8 on Tuesday. Those emails were sent to the Illinois Department of Commerce & Economic Opportunity by Deere officials and say that the affected employees are salaried, adding that they are not represented by a union. Impacted workers will receive an additional 60 days of compensation.
News 8 previously reported that 170 workers were also laid off on July 24 at three Deere facilities in Iowa but did not yet have a confirmed number of Illinois employees affected. Deere told News 8 on July 24 that they would be reducing their global salaried workforce.
Altogether, 489 Deere employees were laid off on July 24. Over the past three months, Deere has announced over 1,500 layoffs at its production facilities and headquarters.
Here is the statement News 8 received from a Deere spokesperson on the 24th:
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.
The company also reiterated its "commitment to US manufacturing" by linking to its website which can be found here.
American labor union United Auto Workers (UAW) released the following statement regarding recent layoffs at Deere:
John Deere’s reckless layoffs and job cuts are an insult to the working class people of Iowa and Illinois, and the United Auto Workers will fight for justice for our members and communities affected by these moves.
Let’s be clear: there is no need for Deere to kill good American jobs and outsource them to Mexico for cheap labor. The company is forecasted to make $7 billion in profit this year. CEO John May’s total compensation for 2023 was $26.8 million. The company has spent $43.6 billion on stock buybacks and dividends over the past two decades. There is no question that there is enough profit to go around, and Deere can afford to keep good jobs in Iowa and Illinois.
So why are they choosing not to? Because Deere’s corporate greed means more to them than the lives of working class people in Ankeny, Waterloo, Ottumwa, or Dubuque. And our government lets them get away with it, with broken trade laws that don’t protect workers on either side of the border.
The UAW is hard at work trying to minimize the impacts of these cuts and layoffs for our members at Deere and pushing the company to do right by our members, their families, and their communities. But when a company is doing as well as Deere, on the hard work of those UAW members who make the product that generates those profits, there is absolutely no reason for job cuts, layoffs, outsourcing, or cutbacks. We will keep pushing for justice at Deere and keep letting corporate America know that the working class will not accept the scraps while the CEOs and shareholders get richer and richer.
U.S. Rep. Eric Sorensen, D-Illinois, sent News 8 the following statement regarding recent layoffs at John Deere:
The decision to lay off employees from John Deere is a punch in the gut to my friends and neighbors here in the Quad Cities. My heart goes out to everyone impacted by these layoffs, from UAW members to those salaried at company headquarters. Deere & Co. has a history nearly as old as this state and it brings so much pride to us here in Illinois. I stand in solidarity with those let go and others who question their future. I remain committed to doing everything I can to create opportunities, make it easier for businesses to thrive here, and to ensure that the Quad Cities remains a warm and welcoming place to settle down, raise a family, and succeed.