John Deere says it's laying off salaried workers because of agriculture downturn

Deere & Co., the Illinois manufacturer of iconic tractors and combines, said Wednesday it’s laying off salaried workers but wouldn't say how many total would lose their jobs in Iowa and elsewhere.

The Moline ag giant notified Iowa Workforce Development Wednesday that 103 workers — 34 in Dubuque and 69 in Waterloo — were being laid off immediately. Deere cited the agricultural downturn for the cuts, pointing to projections that large farm equipment sales this year are expected to fall 20% to 25% below a year ago.

“As the largest global manufacturer of agricultural equipment, John Deere, like many others in our industry, faces significant economic challenges, rising operational and manufacturing costs, and reduced customer demand,” Deere said in a statement Wednesday.

The economic challenges "have unfortunately forced us to make tough decisions including layoffs at John Deere production facilities and reductions in our global salaried workforce,” the manufacturer said.

So far this year, Deere has cut about 1,830 workers in Ankeny, Dubuque, Ottumwa , Urbandale, Waterloo and the Quad Cities’ Davenport and East Moline, Illinois, plants, as well as at an Urbandale research center.

Deere says it employed about 22,600 salary and production workers in Iowa and the Quad Cities at the start of the year.

More: With thousands of Iowa jobs already cut, how deep will the farm downturn will go?

Deere said it’s providing up to 12 months of severance pay to laid-off workers, based on years of service; pro-rated pay based on their short- and long-term cash incentives that are based on company performance; payment for unused vacation or paid time off; ongoing access to health and wellness benefits; and a year of professional job placement services.

“While the decision to reduce roles across the company was a challenging one, the company is confident that these adjustments, coupled with our ongoing efforts to reduce costs and align production and inventory levels, will position John Deere strongly for the future,” the company said in its statement.

At the same time as the salary workforce layoff, Deere emphasized its commitment to U.S. manufacturing , saying it's invested $2 billion in its American factories since 2019, including a new sprayer line at its Ankeny operation, a combine assembly line at Harvester Works plant in East Moline and a new tractor line in Waterloo.

The company says its "economic impact in our U.S. hometown communities and all those where we have a presence is valued at $27 billion."

The company has been criticized for plans to move some production to Mexico, including tractor cab and forage windrow production in Iowa.

Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com or 515-284-8457.

This article originally appeared on Des Moines Register: John Deere says it's laying off salaried workers because of agriculture downturn