John Deere Announces Layoffs for 600 Employees

In a recent development, John Deere has disclosed plans to lay off approximately 600 production employees across three of its factories by August 30. This decision affects workers at the John Deere Harvester Works in East Moline, Illinois, with around 280 employees impacted, as well as the John Deere Davenport Works in Davenport, Iowa, where about 230 employees will be affected. Additionally, the John Deere Dubuque Works in Dubuque, Iowa, will see layoffs impacting approximately 100 production employees.

This announcement comes on the heels of earlier layoffs at various John Deere facilities, reflecting the company’s ongoing efforts to streamline operations and adjust its workforce in response to changing market conditions. Despite reporting better-than-expected second-quarter fiscal results in May, John Deere revised its full-year profit forecast downward due to reduced tractor and equipment purchases by farmers grappling with lower crop prices.

John Deere has outlined several benefits for the impacted employees, including Supplemental Unemployment (SUB) pay, which covers up to 95% of their weekly net pay for up to 26 weeks, depending on their tenure. Following SUB pay, employees will be eligible for Transitional Assistance (TAB) pay, covering 50% of their average weekly earnings for up to 52 weeks. Additionally, profit-sharing benefits will be available based on their hours worked and the company’s profit margin, provided they have completed at least one year of service by the end of the plan year.

Healthcare benefits will also be extended, allowing employees to maintain their coverage for at least six months, or longer if they remain eligible for SUB pay. After this period, they can opt to extend coverage for another 12 months at their own expense. Furthermore, John Deere is offering Weekly Indemnity (WI) benefits to employees who become disabled during their layoff period, along with access to the Employee Assistance Program (EAP) for therapy sessions.

According to a press release from the company, these layoffs are a response to decreased demand for Deere’s products from these specific factories, amid projections of continued decline in industry sales. The affected employees, however, will have the opportunity to be recalled to their respective factories based on seniority or for new openings as they become available.