Why is John Deere company laying off a large portion of its global employees?

John Deere has announced that it is set to move some production from their Dubuque Work plant to new facility in Mexico, resulting in mass layoffs for staff.

A report from KWWL stated that staff received an email from John Deere on Friday May 31 in which it was explained that the company is set to part ways with global production and salaried employees.

The email adds that the layoffs will happen by the end of “Q3 2024″, while calling the announcement “not an easy decision to make”, it did state that it was “a necessary step that we must take to enable the long-term health of our business.”

The Telegraph Herald confirmed plans from Deere to move some production from the USA to Mexico in 2026. It added that the company is acquiring land in Ramos, Mexico, in order to build the new facility which is expected to be operational in a couple of years.

Why are John Deere moving their production location?

In an attempt to explain the decision, the company cited rising operational costs and declining market demand as factors behind their decision.

How many John Deere employees will lose their jobs?

KWWL said that at the time of writing “it is not clear how many people this could impact, or when exactly they will go into effect”. Earlier this year, the company made a similar move, announcing 684 layoffs across its plants in Iowa and Illinois.

When will the John Deere staff lose their jobs?

While company did not disclose the number of impacted employees or locations, it is expected that it will complete the reduction in salaried workforce by the end of September.

Back in 2022, the company announced that it was set to move its cab production from Iowa to Ramos, Mexico, citing tough markets in the United States.

John Deere, which manufactures agricultural machinery, heavy equipment, diesel engines and lawn mowers. It was founded in 1837 and is said to have made 61.25 billion USD in the year 2023.