John Deere Announces Layoffs at Ottumwa Plant
OTTUMWA, IA—John Deere is laying off 75 employees at its Ottumwa, Iowa, plant, effective February 7. This follows a temporary production shutdown at the facility in December due to reduced customer demand.
The layoffs are part of a broader series of workforce reductions by the agricultural and construction equipment manufacturer, which has announced 15 rounds of layoffs over the past year. The cuts have impacted 1,866 workers across its Iowa plants, including facilities in Waterloo, Davenport, Dubuque, Ankeny, Johnston, Urbandale, and Ottumwa.
The Ottumwa plant has faced several setbacks in recent months. In May, 103 employees took early retirement, 16 jobs were eliminated in June, and John Deere announced plans to move mower production from Ottumwa to Mexico.
In a statement, Deere attributed the layoffs to "challenging market conditions" and declining demand for its equipment. The company cited a weak farm economy, with U.S. Department of Agriculture data forecasting row-crop receipts to decline 16% in 2024, following an 8% drop in 2023. Deere also projected its earnings to decrease to $5 billion in 2025, down from $10.1 billion in 2023.
Impacted employees will receive supplemental unemployment pay and transitional assistance, covering 50% of their average weekly earnings for up to a year. Health care coverage will continue for at least six months, with an option to extend coverage for an additional 12 months at the employees' expense.
John Deere, headquartered in Moline, Illinois, employs 30,000 workers at 60 U.S. facilities and has invested over $2 billion in its U.S. operations over the past five years.
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