Waterloo, Iowa – On Tuesday morning, John Deere informed over 100 workers at its Waterloo plant that they would be laid off after the holidays, marking another round of layoffs in the company’s ongoing restructuring efforts.
This announcement comes despite Deere posting a $7 billion net income for the previous year, a figure that, while impressive, represents a 16% drop compared to the previous year.
Details of the Layoffs
Total Layoffs in 2024: Since the beginning of 2024, John Deere has laid off more than 1,700 employees across Iowa, with the majority of the job cuts concentrated in Waterloo.
Waterloo Impact: On Tuesday, 112 workers at the John Deere Waterloo Works were informed that January 3 would be their final day of employment, bringing the total number of layoffs in Waterloo to nearly 1,000 workers this year.
Other Affected Areas: Following the layoffs in Waterloo, another 80 employees in Davenport will be losing their jobs starting January 3. These layoffs were first announced in October as part of a broader downsizing strategy.
Previous Layoffs: Earlier in the year, John Deere also laid off 166 workers from its Des Moines facility and 133 employees from its Dubuque plant.
Reasons Behind the Layoffs
- Market Decline: The layoffs are attributed to difficult market conditions, with John Deere citing a significant drop in demand for its products. The U.S. Department of Agriculture (USDA) forecasts a decline in commodity prices for essential crops like corn and soybeans, which are predicted to continue their downward trend in 2024. These market shifts have led to fewer orders for John Deere’s agricultural and construction equipment.
- Commodity Price Drop: According to the USDA, major row-crop cash payments are expected to fall by 18% in 2024, following a 5% decline last year. The prices for key crops such as corn, soybeans, and wheat have significantly decreased from their 2022 highs—corn prices are down 37%, soybeans are 24% lower, and wheat has dropped by 35%.
- Construction Sector Struggles: Deere also pointed to the slowdown in the housing market, with a 30% drop in single-family home sales and a 10% reduction in single-family housing starts. Multi-family housing starts have fallen by 40% since their peak in 2021. The high interest rates have further suppressed growth in the construction sector, contributing to the company’s challenges.
Impact on Laid-Off Workers
Despite the layoffs, John Deere has assured that workers who are terminated will continue to receive financial and medical benefits for some time following their dismissal. This support is expected to ease the transition for those affected by the job cuts.