John Deere has informed about 600 production workers at three plants, including factories in East Moline and Davenport, that they will be laid off through August 30.
MOLINE, Ill. – John Deere has informed about 600 production workers at three plants that they will be laid off on August 30, according to a press release.
Factories and employees affected by this round of layoffs include:
- John Deere Harvester Works in East Moline, Illinois: About 280 production employees
- John Deere Davenport works in Davenport, Iowa: About 230 production employees
- John Deere Dubuque works in Dubuque, Iowa: About 100 production employees
According to the announcement, the layoffs are being made after declining demand for Deere products from those plants, with industry sales expected to continue to decline.
Deere says the laid-off employees will be eligible to retire at their home plant, with those laid off being placed on a seniority basis for return or new openings.
Affected employees will also receive the following monetary benefits:
- “Supplementary Unemployment Pay (SUB), which covers around 95% of their net weekly pay for up to 26 weeks, depending on their years of service.
- Transitional Allowance Payment (TAB), which covers 50% of their average weekly earnings for up to 52 weeks, after SUB pay ends.
- Profit sharing, which is calculated based on their hours of work, average earnings and the company’s profit margin, if they have at least one year of service by the end of the plan year.”
These employees may also receive the following health care benefits, according to the release:
- “Employees can keep their health coverage for at least six months, or as long as they are eligible for SUB payment, whichever is longer. After that, they can extend their coverage for another 12 months of others, but must pay the full premiums themselves.
- Weekly Compensation: Employees who become disabled while on leave can receive WI benefits for the same duration as their SUB pay, up to 26 weeks, if they meet the requirements.
- Employee Assistance Program: Employees and their family members may access EAP services for the duration of their withdrawal rights. EAP offers up to eight in-person or virtual therapy sessions per year.”
John Deere salaried employee holidays come in July
The announcement comes a day after Deere confirmed that an unspecified number of salaried employees will be laid off, likely by the end of July.
News 8 received the following response from John Deere regarding the letter:
“We can confirm that Deere’s leadership recently communicated that rising operational costs and declining market demand require enterprise-wide changes in the way work is done to achieve our goals and better position the company for the future.
- Aligning our workforce with our strategic priorities by simplifying the organization and reducing overlap and redundancy in roles and responsibilities
- Ensuring our factories are optimized for future products and to operate more efficiently across our global footprint
- Elimination of low-value and non-value-added tasks, activities and expenses
The paid holidays in the US are expected to take place by the end of July. Meanwhile, John Deere plants are constantly balancing the size of the manufacturing workforce with the needs of the individual plant to optimize the workforce at each facility.
Regarding possible future announcements, we are unable to respond to any speculation. When we have layoffs, we only confirm workforce adjustments after all affected employees have been notified.”
In May, Deere reported fiscal second-quarter results that beat Wall Street expectations, but the company cut its full-year profit forecast as farmers buy fewer tractors and other equipment as they grapple with falling crop prices.
On June 5, Deere confirmed that more than 120 employees at its Seeding and Cylinder operations in Moline would be placed on indefinite leave, effective June 28. In May, about 200 production workers at the John Deere Waterloo Works were told they were being laid off after 308 workers were laid off at the end of April at the same location.
John Deere also announced layoffs for 150 employees at its Ankeny plant in March. More than 200 production workers were laid off at Harvester Works in East Moline in October 2023.
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