Deere Lays Off More Workers at Iowa Tractor Plant Amid Slowing Demand

Key Highlights

• Deere lays off 112 workers at Iowa plant due to reduced demand.
• This marks the sixth round of layoffs in 2024.
• Over 1,075 jobs have been cut at the Waterloo plant this year.
• Challenging market conditions, including high interest rates and low farm incomes, impact sales.
• Deere has eliminated over 2,000 jobs across Iowa in 2024.

Deere & Co. has announced another round of layoffs at its Waterloo Works tractor plant in Iowa. The company will be letting go of 112 workers as part of its efforts to reduce production and better match demand. This move comes as Deere continues to face challenges in the agriculture and construction equipment markets.

The layoffs, which are set to take effect on January 3, 2025, brings the total number of job cuts at the Waterloo plant this year to over 1,075. This marks the sixth round of layoffs at the facility in 2024. The company notified the workers of the cuts on Tuesday, according to a filing under the WARN Act.

Affected workers will be eligible for transitional pay, supplemental pay, and healthcare benefits. They may also have the opportunity to return to work if openings become available.

Also Read: Mahindra Tractors Honors Top Farmers at 'Millionaire Farmer of India Awards 2024'

Why Is Deere Laying Off Workers?

Deere has been forced to reduce production due to a slowdown in demand for new farm and construction equipment. The company has stated that challenging market conditions, such as high interest rates, low farm incomes, and weak commodity prices, are contributing to the decline in sales.

With fewer farmers making large purchases and fewer families buying new homes, sales of Deere’s equipment have decreased. The company also faces difficulties with tractor dealers who are struggling to move inventory.

To stay competitive in the global market, Deere says it must continue adjusting its workforce to meet the lower demand for its products.

Impact on Iowa

The impact of these job cuts has been significant in Iowa. Deere has eliminated more than 1,700 jobs across its plants and offices in the state this year alone, with most of these cuts happening at the Waterloo location. Overall, Deere has cut more than 2,000 jobs in 2024, including salaried positions, as it continues to scale back production.

Outlook for Deere and the Agriculture Economy

The weak farm economy is a major factor behind Deere’s sales challenges. According to forecasts from the U.S. Department of Agriculture, cash receipts from major crops like corn and soybeans are expected to drop another 18% this year, following a 5% decline last year. Additionally, commodity prices are projected to fall by more than 30% compared to 2022, when sales of farm and construction equipment were much higher.

At the John Deere Waterloo plant, which manufactures the company’s largest tractors, there are currently 4,700 employees, with around 2,700 working in production and maintenance.

Deere is continuing to adjust its workforce as it navigates through these tough economic conditions, hoping to emerge stronger when demand for equipment picks up again.

Also Read: Domestic Tractors Sales Report November 2024: 1.33% Decline, 71,300 Units Sold

CMV360 Says

Deere’s decision to lay off 112 workers at its Waterloo plant reflects ongoing challenges in the agriculture and construction equipment sectors. With reduced demand due to a weak farm economy and high interest rates, Deere has been forced to cut jobs and production. The company aims to adjust to these tough conditions and remain competitive in the market.