Agricultural machinery manufacturer „Deere & Co“, which owns the „John Deere“ brand, plans to lay off a large number of employees in its worldwide locations, according to agricultural portal AgWeb.  

Regional television station WQAD-8 ABC, which operates in Moline, Illinois, also home to the headquarters of „Deere & Co”, reports that „John Deere“ has confirmed that it has begun to reduce the number of salaried employees around the world.

Many employees have been ordered to work from home until 26 July, with online sources sharing the unpleasant news on Reddit that „John Deere“ is embarking on another round of mass layoffs.

Also, „John Deere“ recently shared that the company "employs approximately 30,000 people in more than 60 US-based facilities in 16 states". The layoffs are expected to affect between 4,500 and 6,000 people.

The other day, Cory Reed, CEO of John Deere, gave an interview to the "U.S. Farm Report" of Farm Journal, one of the world's most popular agribusiness portals, in which he assured that the layoffs are not related to 2021. The strike by 10,000 production workers, which lasted as long as a month, came after "John Deere" and the United Auto Workers (UAW) reached a new six-year agreement, with "John Deere" giving the company a 20% pay increase.

With global agriculture in crisis (low demand for commodities and inputs is expected to persist until 2025), an increasing number of companies in the industry are downsizing or laying off workers.

According to Mr Reed, "John Deere" has recently laid off a number of employees as the company continues to reduce its workforce. The official number of layoffs is not yet known, but it is part of a broader trend of "John Deere" downsizing that has been going on for several months now.

A company spokesman said the layoffs were due to lower net farm income, higher interest rates and market volatility.

The US Department of Agriculture (USDA) forecasts net farm income of $116.1 billion in 2024, down 25.5 per cent from 2023, after a 16 per cent drop in 2023 compared to 2022.

" Net farm income is expected to fall by between 50% and 20%, and when that happens and commodity prices rise, interest rates (...), uncertainty sets in, which cuts off demand. This is what we are experiencing today. Looking at our industry as a whole, revenues are projected to be down about 20 percent this year compared to 2023," Reed told U.S. Farm Report.

A recent report from the U.S. Association of Equipment Manufacturers (AEM) showed that combine sales alone were down 31% in June 2024 compared to last year, while total farm tractor sales were down 16%.

In Lithuania, the „John Deere“ brand is represented by „DOJUS agro“ company.