These layoffs are necessary because of ongoing market challenges, John Deere reps say.
“We can confirm Deere leadership recently communicated that rising operational costs and declining market demand requires enterprise-wide changes in how work gets done to achieve our goals and best position the company for the future,” the company said in response to News 8 receiving a copy of a letter sent to salaried employees informing them of the coming layoffs.
Residents are concerned about how these job losses will affect their communities.
“There’s going to be a significant impact to the small towns here around Iowa that have manufacturing facilities for John Deere,” Chris Laursen, a retired Deere employee, told Fox Business.
These layoffs also come as John Deere shifts some of its production south of the border.
Last month, for example, Deere announced it’s moving skid steer and compact track loader manufacturing from Dubuque to Mexico by 2026.
And in 2022 the manufacturer announced plans to move tractor cab manufacturing from Waterloo, Iowa to a components plant in Mexico beginning in the 2024 fiscal year.
“Let’s not kid ourselves, these are jobs that won’t be returning,” Laursen told Fox Business.