MOLINE, Ill. — John Deere has informed around 600 production employees across three factories that they will be laid off effective Aug. 30, according to a news release.
The factories and employees impacted by this round of layoffs include:
- John Deere Harvester Works in East Moline, Illinois: About 280 production employees
- John Deere Davenport Works in Davenport, Iowa: About 230 production employees
- John Deere Dubuque Works in Dubuque, Iowa: About 100 production employees
According to the release, the layoffs are being made following reduced demand for Deere's products from those factories, with industry sales expected to continue declining.
Deere says employees who are laid off will be eligible to be recalled to their home factory, with those laid off placed in seniority order for return or new openings.
Impacted employees will also receive the following monetary benefits:
- "Supplemental Unemployment (SUB) pay, which covers about 95% of their weekly net pay for up to 26 weeks, depending on their years of service.
- Transitional Assistance (TAB) pay, which covers 50% of their average weekly earnings for up to 52 weeks, after SUB pay runs out.
- Profit Sharing, which is calculated based on their hours worked, average earnings, and the company's profit margin, if they have at least one year of service by the end of the plan year."
These employees can also receive the following healthcare benefits, according to the release:
- "Employees can keep their healthcare coverage for at least six months, or as long as they are eligible for SUB pay, whichever is longer. After that, they can extend their coverage for another 12 months, but they have to pay the full premiums themselves.
- Weekly Indemnity: Employees who become disabled while on layoff can get WI benefits for the same duration as their SUB pay, up to 26 weeks, if they meet the requirements.
- Employee Assistance Program: Employees and their household members can access EAP services for the duration of their recall rights. EAP provides up to eight sessions of in-person or virtual therapy per year."
John Deere salaried employee layoffs coming in July
The announcement comes a day after Deere confirmed an unspecified number of salaried employees will be laid off, likely by the end of July.
News 8 received the following response from John Deere regarding the letter:
"We can confirm Deere leadership recently communicated that rising operational costs and declining market demand requires enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future.
This includes:
- Aligning our workforce to our strategic priorities while simplifying the organization and reducing overlap and redundancy in roles and responsibilities
- Ensuring our factories are optimized for future products and to operate more efficiently across our global footprint
- Eliminating low- and non-value-added tasks, activities, and expenses
Salaried layoffs in the U.S. are expected to occur by the end of July. Meanwhile John Deere factories are consistently balancing the size of the production workforce with the needs of the individual factory to optimize the workforce at each facility.
Regarding potential upcoming announcements, we are not able to respond to any speculation. When we do have layoffs, we only confirm workforce adjustments once all impacted employees are notified."
In May, Deere reported second-quarter fiscal results that beat Wall Street's expectations, but the company lowered its full-year profit forecast as farmers purchase fewer tractors and other equipment as they deal with declining crop prices.
On June 5, Deere confirmed that more than 120 employees at its Seeding and Cylinder operations in Moline would be placed on indefinite leave effective June 28. In May, around 200 John Deere Waterloo Works production employees were informed that they were being laid off after 308 workers were laid off in late April at the same location.
John Deere also announced layoffs for 150 employees at its Ankeny plant in March. More than 200 production employees were laid off at Harvester Works in East Moline in October 2023.
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