John Deere has announced a mass layoff that will affect 267 employees across its various facilities. The layoffs are, as part of the company's ongoing workforce adjustments in response to reduced demand for agricultural equipment.

It is implementing layoffs for 112 employees at its Waterloo Works facility in eastern Iowa, according to WARN notices filed on January 3, with Iowa Workforce Development. Another 75 are being laid off at its Ottumwa facility which is scheduled to take effect on February 7, 2025. This follows a recent layoff of 80 employees in Davenport Works. Since the beginning of 2024, John Deere has cut over 1,700 jobs in Iowa, primarily in Waterloo.

The news comes after John Deere's Ottumwa Works temporarily shut down the plant in early December 2024, a move prompted by declining customer demand. The plant has since reopened, but the company continues to face challenges in the market.

The Ottumwa and Waterloo facilities produce John Deere's larger farming equipment. The company had announced some of these layoffs on December 3, attributing them to weak demand and a difficult market.

The decision follows a broader downturn in the agricultural sector. According to the U.S. Department of Agriculture (USDA), major row-crop cash receipts are projected to decline by 16% in 2024, following an 8% drop in 2023. Additionally, USDA forecasts indicate that marketing-year average prices for crops like corn, soybeans, and wheat will continue to fall, with corn prices down 37%, soybeans down 24%, and wheat down 37% compared to 2022 levels.

John Deere confirmed the layoff decision through a statement, referencing its most recent fourth-quarter earnings report. "Challenging market conditions continue to result in reduced demand for our equipment, with projected earnings for 2025 down $5 billion from 2023," the company said. In 2023, John Deere reported earnings of $10.1 billion, but the company anticipates a significant drop in 2025 due to continued market pressures.

To remain competitive in the global market, John Deere emphasized the need for ongoing adjustments to its workforce and manufacturing operations. "To remain globally competitive, we must continue making workforce adjustments as needed to our manufacturing footprint," the company stated. The layoff of 75 production employees at the Ottumwa plant is part of this strategy, reflecting the broader trend of workforce reductions across the company.

This layoff at the Ottumwa plant is part of a wider series of workforce reductions across John Deere's operations. Just a week prior, on January 3, 2025, the company announced the layoff of 112 employees at its Waterloo facility and 80 employees at John Deere Davenport Works.

Despite the layoffs, John Deere has remained committed to supporting its workforce through these challenging times. The company is focused on adapting to market conditions while maintaining its competitive position in the global agricultural equipment sector. The workforce adjustments in Ottumwa are a part of this broader strategy, as John Deere navigates a period of reduced demand for its products.