Deere and Co. said it will lay off almost 300 workers at its Moline headquarters.
The news was reported in a notice which was filed with the state on Monday.
Latest Cutbacks
The latest round of cutbacks comes after the farm vehicle powerhouse said recently it would layoff almost 600 workers.
These layoffs were to be spread across two manufacturing plants in Iowa and one in Moline.
Salaried Layoffs
Deere affirmed the cutbacks in a release to the Tribune following the state filing.
They took note that the new cutbacks were of salaried representatives and not production laborers.
“Signficiant Challenges”
“John Deere, like many others in our industry, faces significant economic challenges, rising operational and manufacturing costs,” the company stated.
The company also reported experiencing a “reduced customer demand, including a 20 percent decline in sales from 2023 to 2024.”
“Tough Decisions”
The release continued: “This reduction in product demand and increased operational costs have unfortunately forced us to make tough decisions including layoffs”
These layoffs were focused on both the “John Deere production facilities and reductions in our global salaried workforce.”
Compensation Eligibility
According to the company, salaried workers who are laid off will be eligible for severance pay, prorated short-term and long-term incentive cash compensation benefits.
This comes along with payouts for unused vacation time, and “access to ongoing health and wellness benefits,” depending on how long they have worked for the company.
Sales Declines
Deere has revealed year-over-year sales declines three quarters in succession.
During the May earnings call, the director of investor relations for the company, Josh Beal, made a statement.
“Farmer Sentiment”
According to Beal: “Uncertainty has caused a decline in farmer sentiment.”
“As a result, we are seeing a softer retail environment today than we did just six months ago.”
Global Workforce
Since last year, the organization had in excess of 80,000 employees around the world.
The agricultural equipment giant also has a presence in Chicago while based in Moline.
Tech Hub
In 2021, the company said it would open a tech hub in Fulton Market.
At that point, the organization said it intended to recruit around 150 information technology workers over the course of two years.
United Auto Workers
The United Auto Workers issued a release on Tuesday which provides representation for some workers at Deere.
They referred to the cutbacks as “an insult to the working class people of Iowa and Illinois.”
Projected Income
The union highlighted the organization’s projected net income of $7 billion this year.
They said there was “no question that there is enough profit to go around.
“Deere can afford to keep good jobs in Iowa and Illinois.”
