John Deere under fire for laying off hundreds of American workers as it shifts manufacturing to Mexico

Tractor giant John Deere faced backlash after announced it was laying off hundreds of workers across the Midwest — even as it continues to operate a manufacturing hub in Mexico.

The Illinois-based company, which is the world’s largest seller of large tractors and other farm equipment, informed hundreds of employees in Iowa last week that they were out of a job.

Around 100 people will come from the plant in Dubuque, according to Hoosier Ag Today.

Earlier this month, John Deere said it would be cutting 600 jobs at three facilities in Illinois and Iowa.

The company said it planned to eliminate 28 positions from a plant in East Moline, Ill., as well as 230 employees from its Davenport, Iowa, facility.

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“As the largest global manufacturer of agricultural equipment, John Deere, like many others, faces significant economic challenges, rising operational and manufacturing costs, and reduced customer demand, including a 20 percent decline in sales from 2023 to 2024,” the company said in a statement.

Reaction on social media was scathing.

“I can’t believe that an American legacy company like @JohnDeere is firing Americans to take those jobs to Mexico. It’s wrong. Just for that, they should be put out of business,” commented one X user.

Another X user wrote: “John Deere should drop the pretense of being an American company and of espousing American values. They aren’t and they don’t.”

The Post has sought comment from John Deere.

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Last month, the company announced it would shift the manufacturing of skid steer loaders and compact track loaders from the Dubuque plant to Mexico by the end of 2026.

Cory Reed, president of Deere & Co.’s worldwide agriculture and turf division for production and precision agriculture in the Americas and Australia, told US Farm Report that the Mexico facility has been in operation for nearly 70 years and that it is “an important part of our global footprint.”

Reed defended the layoffs, saying they were necessary to counter economic headwinds.

“Net farm income is expected to be down in the mid to high 20s, and when that happens, and commodity prices pull back, interest rates are a little bit higher and we see volatility in the weather, it creates uncertainty that interrupts demand,” Reed said.

“We’re experiencing that today. Looking out across our industry, we’re expecting to be off roughly 20% year-over-year from 2023.”

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John Deere said it made $10.2 billion in profits last year — a 42% increase from 2022.

Filings with the Securities and Exchange Commission show that its CEO, John May, earned $26.7 million in total compensation — up from $20.3 million in 2022.

Earlier this month, John Deere said it would scale back its diversity, equity and inclusion initiatives (DEI) after a pressure campaign from conservative social media influencer Robby Starbuck.

Meanwhile, the manufacturing boom that marked the end of the coronavirus pandemic appears to have lost steam as soaring inflation, high interest rates, rising operating costs and reduced demand for commodities has American companies bracing for an extended slump.

Polaris, the maker of off-road vehicles and motorcycles, recently reported a 49% drop in quarterly income — prompting it to cut back on shipments to dealers.

Michael Speetzen, the company’s CEO, told analysts last week that consumers have pulled back on discretionary spending.

“Retail has proven weaker than anyone expected,” he said.

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