John Deere is the world’s leading agricultural, construction, and forestry equipment and solutions manufacturer. Also, they develop drivetrain components, engines for industrial and maritime equipment, and generator drives. John Deere Waterloo Operations now employs around 5,200 people. It includes about 3,300 people working in production and maintenance.
John Deere Waterloo Layoffs 190 employees jobs , on June 22, 2024, and they will not report to work. This fresh round of layoffs follows the company’s previous layoffs of around 300 workers in April 2024.
The business stated, “Each John Deere factory balances the size of its production staff with the needs of the specific factory. This is to maximize the workforce at each facility.”
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What happened to the business?
On Tuesday, March 26, John Deere informed employees at its Waterloo Operations in Waterloo, Iowa, about the layoffs. It said 308 production employees will be placed on indefinite layoffs beginning April 29. Factory leadership informed employees of the layoffs during meetings. To maximize the workforce at each location, every John Deere factory strikes a balance between the size of its production staff and its unique needs.
As recently as 2021, Deere tried to fill jobs in Waterloo, hiring 400 new employees. It projected the need for hundreds more to address exceedingly backlogged orders. Later that year, after Deere reported record profitability, workers went on strike for five weeks. It resulted in a new, six-year contract that increased pay by 10% and expanded other benefits.
However, in February of this year, Deere decreased its earnings projection. It reported earnings per share that were 8% lower than the previous year.
CEO John May stated that the company expected a decrease in orders. It’s because agricultural fundamentals normalized from record levels in 2022 and 2023.
John Deere Waterloo Layoffs in April
As mentioned earlier, John Deere stated that 308 production workers will be put off indefinitely on April 29. Employees learned about the layoffs during meetings with plant leaders. The Iowa Workforce Development WARN (Worker Adjustment and Retraining Act) website also reported that 308 workers would be idled.
The announcement comes two weeks after the company announced plans to lay off 150 employees at its Ankeny site.
According to recent Deere earnings reports, the business earned $10.1 billion in FY 2023. It expects earnings of $7.5 billion to $7.75 billion in FY 2024.
In February, the firm announced a net income of $1.751 billion for the first quarter of 2024, which ended on January 28, or $6.23 per share. This decreased from the same period last year when the company posted a net income of $1.959 billion, or $6.55 per share.
The business said on February 28 that the largest, most potent tractor it has ever produced will leave Waterloo’s assembly lines in mid-2024.
The new “9RX” tractor is a versatile swivel-joint “articulated” tractor with four massive treads, or “tracks.” The tractor can be equipped with 830, 770, or 710 horsepower engines.
Deere has announced additional layoffs in Iowa
The John Deere facility in Waterloo will lay off 192 employees on June 22. The business announced Iowa’s Worker Adjustment and Retraining Notification, or WARN, website.
Deere is the world’s largest manufacturer of farm machinery. It is headquartered in Moline, Illinois, in the Quad Cities, although the majority of its U.S. production is in Iowa.
Deere told KWWL-TV in Waterloo that managers had met with employees to notify them of the layoffs.
Net revenues for Deere’s production and precision agricultural businesses fell 16% to $6.6 billion in the second quarter of 2024. It was $7.8 billion in the same period as the previous year. This decrease is mainly due to reduced shipping quantities. Also, large agricultural equipment sales in the United States and Canada are predicted to be down 15% this year.
According to the USDA, farm revenue is forecast to fall 25.5% to $116.1 billion this year from 2023. It marks the second straight annual reduction as maize and soybean prices fall and production expenses rise.
The pressure from higher mortgage rates has also affected farmers. It compelled some equipment dealers to reduce prices or provide discounts to manage their bloated inventories. This, in turn, forced Deere and other companies to reduce production.
While agricultural prices have lately risen, most crop prices remain much lower than in 2023. This implies that revenues will remain under pressure in the coming year.
Nationwide Senior Economist Ben Ayers argued that interest rates would remain higher through 2025. This is because credit conditions may be tight for some time.
Conclusion
Waterloo-Cedar Falls state Senators Bill Dotzler and Eric Giddens responded quickly to the layoff announcement. They released a news release criticizing the Republican majority in the Legislature for reducing the duration of unemployment benefits for Iowa workers from 26 weeks to 16 weeks.
“These layoffs will have an extensive effect on Iowa families and the whole Cedar Valley. “The state has to speak up and help these workers, their families, and our communities,” Giddens added. “Iowa’s economy is based on agriculture, which is based on the machinery and tools these laborers manufacture. We must care for them in their hour of need.”
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