by Moline, IL – John Deere has announced layoffs at three Midwestern factories as the company faces declining sales and mounting tariff-related costs, marking another blow to America’s agricultural sector.
The layoffs highlight the continued strain tariffs are placing on U.S. manufacturers and farmers. Agricultural groups have warned that increased duties are raising costs and threatening export markets. As John Deere’s announcement makes clear, challenges in the farming industry are reverberating through equipment sales and the company’s financial performance.
“The struggling ag economy continues to impact orders for John Deere equipment,” the company said in a statement. “This is a challenging time for many farmers, growers, and producers, and it directly impacts our business in the near term.”
Details of Job Cuts
The job cuts were confirmed in a company statement following a series of initial WARN notices. A total of 238 workers will be affected across three facilities:
- Harvester Works in East Moline, Illinois – 115 employees, last day August 29
- Seeding and Cylinder in Moline, Illinois – 52 employees, last day September 26
- Foundry in Waterloo, Iowa – 71 employees, last day September 19
John Deere said the reductions stem from “decreased demand and lower order volumes.”
Earnings and Tariff Costs
The announcement came on the heels of John Deere’s third-quarter earnings report, which showed a 26 percent year-over-year decline in net income to $1.3 billion, alongside a 9 percent drop in net sales and revenues to $12 billion.
Josh Beale, Director of Investor Relations, told investors that tariffs cost the company roughly $200 million in the third quarter alone, with total tariff-related expenses this fiscal year now nearing $600 million. That figure is up from a prior forecast of $500 million, driven by higher tariff rates on the European Union, India, and steel and aluminum imports.
Competitors AGCO and CNH Industrial also reported weaker sales, similarly citing soft demand and tariff pressures. However, broader U.S. corporate earnings remain strong, with Goldman Sachs reporting S&P 500 companies saw earnings per share rise 11 percent year-over-year in the second quarter, far exceeding expectations.
Next Steps for Workers and Company
John Deere said employees affected by the layoffs may be eligible for recall in the future and will continue receiving employment and health care benefits depending on tenure.
The company has also unveiled long-term plans to strengthen its domestic operations, pledging to invest $20 billion in U.S. manufacturing over the next decade in an effort to offset global trade pressures.
