More Deere Layoffs in Quad Cities

“It is important to note these layoffs are due to reduced demand for the products produced at these facilities. They are not related to production moves,” a spokesperson for the company stated. “As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy and a reduction in customer orders for our equipment.”

Congressman Eric Sorensen, IL-17, released a statement calling Wednesday a “hard day” for the Quad-Cities community. His congressional office, he said, has resources to connected affected workers with services and benefits.

“Deere & Company is part of the fabric of the Quad-Cities and the UAW workers who build the Seeders and Harvesters that are used around the world help our community grow and thrive,” Sorensen said, adding the company could “afford to better take care of their workers in John Deere’s hometown.”

Sorensen also called on Congress to pass a bipartisan Farm Bill, saying critical programs that impact the price of corn and soy are running out of money and need to be replenished and updated. This, he said, impacts Deere’s production and the workers as much as family farmers.

Rumors the company is moving to Mexico have been swirling for some time, prompting the company to shut down those rumors on multiple occasions. Most recently, the company pushed back on the idea in late September after former President Donald Trump threatened the company with a 200% tariff should he win the election and it opted to export manufacturing to Mexico.

In a statement at the time, a spokesperson said the company was “not moving to Mexico as continues to be reported.”

Deere said orders are down due to a major drop in row-crop receipts. The USDA estimates they will be down 18% in 2024, following a 5% decline the year before.

The USDA is forecasting that marketing-year average prices for the new crop (harvested now) will continue to decline and be down more than 30% compared to a few years prior.

On the construction side of things, single-family home sales are down 30%, single-family housing starts are down 10% and multi-family housing starts are down 40% when compared to their peak in 2021, according to Deere.

“Despite some interest rate reductions, the current interest rate level is still elevated compared to recent history,” the company stated.

Laid-off employees are eligible to be, “recalled to their home factory for a period equal to their length of service. Those laid off are automatically placed in seniority order for openings they are qualified to perform at the factory.”

They will receive monetary benefits including supplemental unemployment pay that covers about 95% of their weekly net pay for up to 26 weeks, depending on their years of service, and transitional assistance pay, which covers 50% of their average weekly earnings for up to 52 weeks, after the supplemental unemployment pay runs out. They also qualify for profit sharing, which is calculated based on their hours worked, average earnings, and the company’s profit margin, if they have at least one year of service by the end of the plan year.

Healthcare benefits that employees can receive during a layoff include keeping their healthcare coverage for at least six months, or as long as they are eligible for supplemental unemployment pay, whichever is longer. After that, they can extend their coverage for another 12 months, but they have to pay the full premiums themselves.

Employees who become disabled while on layoff can get weekly indemnity benefits for the same duration as their supplemental unemployment pay, up to 26 weeks, if they meet the requirements. Employees and their household members can access employee assistance program services for the duration of their recall rights, which include up to eight sessions of therapy per year.

Over the past year, cuts have come across Eastern Iowa and Illinois.

Previously the company cited rising costs and reduced demand for the need for layoffs, including a 20% decline in sales from 2023 to 2024. In addition, the company has said it will provide services such as payment for unused vacation and ongoing benefits for employees impacted.

Layoffs started in October 2023 with 225 workers laid off at John Deere Harvester Works in East Moline. They picked up in April when nearly 400 were laid off between the Des Moines and Waterloo works facilities.

Many more followed with 36 scheduled to be laid off Oct. 4 at Moline Cylinder Works, bringing the total to nearly 2,700 cuts in that time frame. That number has now climbed to nearly 3,000.

Update: This story has been updated with Sorensen’s statement.

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