MOLINE, Ill. — John Deere has confirmed hundreds of additional layoffs impacting workers in the Quad Cities.
A company spokesperson said around 287 production employees across three facilities will be laid off, effective Jan. 3. That includes around 200 workers at Harvester Works in East Moline, about 80 at Deere's Davenport Works facility and seven employees at its Seeding and Cylinder operations in Moline.
In a statement, the company noted that "these layoffs are due to reduced demand for the products produced at these facilities," and that "they are not related to production moves." Deere had previously announced in June that it would be moving some operations from its Dubuque plant down to Mexico. The company continues to cite low demand in the agricultural sector and a "weakening farm economy" as the reason for hundreds of layoffs this year.
Since May, the company has now announced layoffs impacting more than 1,800 workers at its production facilities and headquarters. That number includes the layoffs announced Wednesday.
Wednesday's announcement comes after U.S. Rep. Eric Sorensen, D-Illinois, met with John Deere leadership back in August. Following that meeting, Sorensen said the company was not planning any additional layoffs. News 8 reached out to Deere to confirm or deny Sorensen's statement but never heard back.
Sorensen provided the following statement WEdnesday following the announcement of the layoffs:
“Every day, I’m proud to be a Quad Citizen and call this place my home. We have a special way of life here, we take pride in what we do, and how we do it. Deere & Company is part of the fabric of the Quad Cities and the UAW workers who build the Seeders & Harvesters that are used around the world help our community thrive and grow.
“Today is a hard day for our Quad Cities community and I pledge to do everything that I’m able to support the workers affected by these layoffs. Our Congressional Office has the resources to connect affected workers with services and benefits. We will work hand-in-hand with our partners in the Governor’s Office and UAW to make sure that we do everything we can to support workers.
“Representing our district on the House Agriculture Committee has always been important, and it is clear from today’s decision that now more than ever we need to pass a bipartisan Farm Bill. Critical programs that impact the price of corn and soy are running out of money and need to be replenished and updated. This affects Deere & Company’s production and impacts workers as much as our family farmers. We must get a bipartisan Farm Bill passed, which will open up opportunities for Deere.
“Deere & Company’s annual profits exceed $7 billion. Today’s stock price exceeded $410 per share. C-suite salaries are in the tens of millions of dollars. They can afford to better take care of their workers in John Deere’s hometown.”
Here is a breakdown of how many employees currently work at each of the impacted facilities:
- John Deere Harvester Works in East Moline: 1,880 total employees; around 1,395 working in production/maintenance
- John Deere Davenport Works in Davenport: 1,024 total employees; 824 working in production/maintenance
- Seeding and Cylinder operations in Moline: Around 625 total employees; 427 working in production/maintenance
The Deere spokesperson said that "employees are eligible to be recalled to their home factory for a period equal to their length of service" and that laid-off employees receive automatic seniority for openings they are qualified for.
Company officials also said that laid-off employees receive supplemental unemployment pay for up to 26 weeks, depending on how long they've worked with the company. Deere says this covers about 95% of their weekly pay when combined with state unemployment benefits. Additional health care and transitional assistance are available for laid-off employees based on how long they worked for the company.
You can find News 8's continuing John Deere coverage here. Deere's entire statement sent on Wednesday can be found below.
Due to reduced demand for our equipment, John Deere has informed employees at three of its facilities in the Quad Cities of upcoming layoffs effective Jan. 3. These include:
- John Deere Harvester Works in East Moline, Illinois: About 200 production employees
- John Deere Davenport Works in Davenport, Iowa: About 80 production employees
- John Deere Seeding and Cylinder operations in Moline, Illinois: Seven production employees
It is important to note these layoffs are due to reduced demand for the products produced at these facilities. They are not related to production moves. As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy and a reduction in customer orders for our equipment.
Why are orders down?
- The U.S. Department of Agriculture (USDA) forecasts major row-crop cash receipts to be down another 18% in 2024, following a 5% decline last year.
- The USDA also forecasts marketing year average prices for the new crop (crops harvested right now) to continue to decline from last year and to be down over 30% compared to a couple of years ago (compared to 2022: corn -37%, soybeans -24%, and wheat -35%)
- In the construction industry, compared to its peak in 2021, single-family home sales are down 30%, single-family housing starts are down 10%, and multi-family housing starts are down 40%.
- Despite some interest rate reductions, the current interest rate level is still elevated compared to recent history.
Additional information:
Current employee totals for each facility:
- John Deere Harvester Works currently has 1,880 total employees with about 1,395 working in production and maintenance jobs.
- John Deere Davenport Works currently has 1,024 total employees with 824 working in production and maintenance jobs.
- Seeding and Cylinder operations currently has about 625 total employees with 427 working in production and maintenance jobs.
Employees are eligible to be recalled to their home factory for a period equal to their length of service. Those laid off are automatically placed in seniority order for openings they are qualified to perform at the factory.
Laid-off employees will receive the following monetary benefits:
- Supplemental Unemployment (SUB) pay, which covers about 95% of their weekly net pay for up to 26 weeks, depending on their years of service.
- Transitional Assistance (TAB) pay, which covers 50% of their average weekly earnings for up to 52 weeks, after SUB pay runs out.
- Profit Sharing, which is calculated based on their hours worked, average earnings, and the company's profit margin, if they have at least one year of service by the end of the plan year.
Healthcare benefits that employees can receive during a layoff include:
- Employees can keep their healthcare coverage for at least six months, or as long as they are eligible for SUB pay, whichever is longer. After that, they can extend their coverage for another 12 months, but they have to pay the full premiums themselves.
- Weekly Indemnity: Employees who become disabled while on layoff can get WI benefits for the same duration as their SUB pay, up to 26 weeks, if they meet the requirements.
- Employee Assistance Program: Employees and their household members can access EAP services for the duration of their recall rights. EAP provides up to eight sessions of in-person or virtual therapy per year.
Other benefits laid-off employees may receive include:
- Life insurance, legal assistance, tuition reimbursement and job-placement assistance.