John Deere, a major manufacturer of agricultural equipment, has announced plans to cut 800 jobs at its facilities in Iowa and Illinois in the coming weeks. This decision comes after the company revealed last month that it would be moving production of its skid steer loaders and compact track loaders from Dubuque to Mexico by the end of 2026.
The move is expected to affect around 200 positions in Davenport, 99 in Dubuque, and more than 500 in East Moline, Illinois. Earlier this year, the company had also announced over 800 job cuts at facilities in Waterloo, Ottumwa, and the Des Moines metro area.
John Deere cited rising manufacturing costs and a slowdown in new ag equipment sales due to lower crop prices as key reasons for the job cuts. The company stated that it is predicted that farm income could drop by 25% this year compared to last year.
Iowa Secretary of Agriculture Mike Naig expressed concern about the news and said that any job cuts or relocations are worrying and need to be understood. He noted that there is a noticeable softness in the agricultural economy, influenced by factors such as inflation, high input prices, and interest rates. Naig emphasized the importance of supporting agriculture and manufacturing as they play a crucial role in driving the state’s economy.
The economic challenges are not limited to the ag equipment sector but are evident in other industries like meat processing and manufacturing as well. Naig urged businesses to address these challenges by finding innovative solutions that can help mitigate their impact on workers and communities.
