John Deere announces mass layoffs in Midwest amid production shift to Mexico
Why is John Deere laying off 610 workers?
John Deere is laying off 610 workers due to reduced demand for its products from factories in Illinois and Iowa. The company is shifting production to Mexico by the end of 2026 to address rising manufacturing costs and improve operational efficiencies. This decision is part of John Deere's plan to evolve its business model and optimize its factories for future products.
What benefits are being offered to laid-off John Deere workers?
Laid-off John Deere workers are being offered a Supplemental Unemployment Benefit (SUB) which covers about 95% of their weekly net pay for up to 26 weeks, depending on their years of service. They are also given profit-sharing options and health benefits. Additionally, employees with 10 to 24 years at the company receive a $37,500 retirement bonus, while more experienced workers get $50,000.
What reasons did John Deere provide for these layoffs?
John Deere announced the layoffs due to reduced demand for their products from the affected factories1. The company stated that rising operational costs and declining market demand required enterprise-wide changes in how work gets done. The decision is also part of their evolving business model, addressing rising manufacturing costs, and improving operational efficiencies.