Illinois Based Manufacturing Company facing Backlash after Layoffs and Relocation Announcement; Shifting Hubs to Mexico Amid Financial Troubles
John Deere received criticism for its decision to lay off hundreds of workers in the Midwest, despite maintaining a manufacturing hub in Mexico.
Last week, the Illinois-based company delivered the unfortunate news to hundreds of employees in Iowa that they would no longer have a job. This company happens to be the largest seller of large tractors and other farm equipment worldwide.
In a recent announcement, John Deere revealed plans to reduce its workforce by 600 employees across three locations in Illinois and Iowa.
The company announced its decision to reduce workforce at its East Moline, Ill. plant by 28 positions and its Davenport, Iowa facility by 230 employees.
In a recent announcement, the company revealed its plans to relocate the production of skid steer loaders and compact track loaders from the Dubuque plant to Mexico by the end of 2026.
“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.
Cory Reed, the president of Deere & Co.’s worldwide agriculture and turf division for production and precision agriculture in the Americas and Australia, emphasized the significance of the Mexico facility, which has been operating for almost 70 years. He stated that it plays a crucial role in their global presence.
“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.”
The company faced backlash on social media after the latest announcement.
“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.”
Source: The Post
