WASHINGTON — Deere & Co. to Lay Off Nearly 600 Workers Amid 15% Revenue Decline

Deere & Co. announced on Monday that it will lay off nearly 600 workers due to decreasing demand for its farm equipment, following a 15% decline in revenue. The layoffs will affect production positions primarily at two factories in Iowa and at its headquarters in Moline, Illinois, where 280 employees will be laid off effective August 30. An additional 310 workers will be let go at the Iowa locations.

In its second-quarter earnings report released in May, Deere reported a revenue decline of over 15%, marking the third consecutive quarter of year-over-year sales drops. Company executives indicated that they anticipate further sales declines in the second half of the fiscal year and will continue to take proactive measures to reduce production and inventory.

Deere & Co. reported a quarterly profit of $2.37 billion, down from $2.86 billion in the same period the previous year, and has lowered its full-year 2024 profit forecast for the second time. The decline in demand for tractors and other equipment is attributed to falling crop prices.

The U.S. Department of Agriculture (USDA) expects net farm income for 2024 to total $116.1 billion, down 25.5% from the previous year. Adjusted for inflation, net farm income is projected to decrease by 27.1%, with farmers facing lower prices for soybeans and corn. The USDA also noted that reduced direct government payments and higher production costs are impacting farmers’ profits.

The recent layoffs represent about 14% of the more than 4,000 production and maintenance jobs at the three affected facilities. Deere employs over 80,000 people globally.

Deere’s shares fell 1.6% in morning trading and are down approximately 7.5% since the beginning of 2024.

Earlier in June, Deere announced plans to move its skid steer and track loader manufacturing from Dubuque, Iowa to Mexico by the end of 2026. The company is in the process of acquiring land in Ramos, Mexico, to build a new factory. Additionally, over 120 production employees at its seeding and cylinder operations in Moline were informed of indefinite layoffs effective June 28.