Deere & Co. on Friday said it will lay off 238 workers across three Midwest factories as trade uncertainty and slow demand continues to impact the U.S. agriculture equipment market.
Due to lower order volumes, the world’s largest tractor maker is reducing the headcount at its Harvester Works facility in East Moline, Illinois, by 115, the company said in an emailed statement. The workers’ last day will be Aug. 29.
The Moline-based company is also making cuts at its nearby Seeding and Cylinder facility, affecting 52 workers, and at its foundry in Waterloo, Iowa, affecting 71 workers. Their last days will be Sept. 26 and Sept. 19, respectively.
“The struggling ag economy continues to impact orders for John Deere equipment,” the company said. “This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.”
While overall sales and revenue for Deere declined 9% in its latest quarter versus last year, buoyed somewhat by construction equipment and lawnmower sales, the company’s farm and precision agriculture business faced stiffer headwinds.
The business saw fiscal third quarter sales fall 16% year-over-year to $4.3 billion due to lower shipment volumes and unfavorable pricing for its products and services. It also reported operating profit of $580 million, down 50% from a year ago.
Competitors Agco Corp. and CNH Industrial also saw softer sales during the period, citing challenges in the United States, where farmers are experiencing high inflation, interest rates and operational costs amid tariff uncertainty.
“Until there’s more stability in the industry, [we] expect customers to continue to take a measured approach to capital investment,” Josh Beal, Deere’s director of investor relations, said on an Aug. 14 earnings call.
Deere detailed its recent layoff plans after the Illinois Department of Commerce and Economic Opportunity on Aug. 13 reported a larger 819-person headcount reduction at the tractor maker’s Harvester Works facility.
Shortly after, a Deere spokesperson disputed the number and Illinois’ DCEO deleted the report from its log. The agency apologized for the oversight, saying there was an “internal error” that has since been corrected, ABC News affiliate WQAD8 reported.
Illinois' DCEO did not immediately respond to a request for comment about the matter.
Looking ahead, Deere and others are optimistic that the down cycle in the tractor market could start to recover later this year into 2026. However, ongoing trade volatility is likely to affect the turnaround. Recently, the Trump administration levied country-specific duties and raised tariffs to 50% for steel and aluminum imports.
Despite these challenges and layoff decisions, Deere said it remains committed to U.S. manufacturing. It has plans to invest nearly $20 billion over the next decade to upgrade and enhance its facilities across the country, as well as expand and open new factories.
