The agricultural machinery giant, John Deere, has announced another round of layoffs at its Ottumwa, Iowa, plant, signaling continued challenges within the farm economy. This recent announcement, disclosed on Monday via the state’s Worker Adjustment and Retraining Notification (WARN) site, reveals that 75 additional employees will be laid off, effective February 7th.
This decision follows a temporary production halt at the Ottumwa facility which began in December. At that time, John Deere cited decreased customer demand as the primary factor for the suspension. The latest job cuts and the previous production shutdown underscore the ongoing pressures faced by the agricultural sector and its impact on manufacturing jobs.
These layoffs are not isolated incidents. Earlier in May, John Deere saw 103 workers take early retirement, followed by the elimination of 16 positions on June 1st. Furthermore, the company had previously announced the relocation of mower production from the Ottumwa plant to Mexico. These moves collectively demonstrate a broader trend of workforce adjustments within the company.
Workers filing for unemployment benefits, representing the impact of job losses in the agricultural manufacturing sector.
Wider Impact of John Deere Layoffs Across Iowa
This recent layoff announcement marks the fifteenth such announcement from John Deere in the past year. These workforce reductions have significantly impacted Iowa, with approximately 1,866 workers affected across various facilities. Plants in Waterloo, Davenport, Dubuque, Ankeny, Johnston, and Urbandale have all experienced layoffs, highlighting the widespread nature of these job cuts throughout the state.
John Deere, headquartered in Moline, Illinois, attributes these continued layoffs to a “challenging market conditions” and a subsequent decrease in demand for their agricultural equipment. The company has stated that its projected earnings for 2025 are anticipated to be $5 billion lower than the $10.1 billion reported in 2023.
In a public statement, John Deere emphasized the need for these adjustments to maintain global competitiveness. The company pointed to the struggling farm economy as a key factor, referencing U.S. Department of Agriculture forecasts indicating a further 16% decrease in row-crop receipts for 2024, following an 8% decline in 2023. This economic downturn directly impacts farmers’ ability and willingness to invest in new equipment, leading to reduced demand for manufacturers like John Deere.
Employee Benefits and Support
Despite the job losses, John Deere has outlined a benefits package for affected employees in Ottumwa. These employees will receive supplemental unemployment pay, followed by transitional assistance. This assistance will provide 50% of their average weekly earnings for up to 52 weeks.
Furthermore, employees will retain their health care coverage for a minimum of six months, or for the duration of their supplemental unemployment pay, whichever period is longer. Following this initial period, employees have the option to extend their health care coverage for an additional 12 months, although they would be responsible for paying the full premiums.
John Deere emphasizes its significant presence in the U.S., employing 30,000 workers across 60 facilities in 16 states. The company also highlights its investment of over $2 billion in U.S. factories within the last five years. However, these layoffs underscore the current economic headwinds facing the agricultural sector and the difficult decisions companies like John Deere are compelled to make in response to market pressures.
