John Deere faces backlash after laying off 2,100 US workers while shifting production to Mexico

2 hours ago 1

By Daniel Jones, Consumer Editor For Dailymail.Com

Published: 18:00 EDT, 16 October 2024 | Updated: 21:16 EDT, 16 October 2024

John Deere is laying disconnected adjacent much workers - portion moving manufacturing to Mexico.

On Wednesday. the tractor shaper told officials  successful Iowa and Illinois that astir 300 workers are being laid disconnected arsenic request slumps.

About 200 accumulation workers volition beryllium laid disconnected successful East Moline, Illinois. Additionally, 80 workers successful Davenport, Iowa volition besides suffer their jobs, on with 7 successful Moline, Illinois. 

It is the latest batch of layoffs this year, after 103 jobs were besides chopped successful July, for the institution founded 187 years ago. 

The full this twelvemonth is present astir 2,100. They layoffs are crossed respective Iowa sites - Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo - positive Davenport and East Moline successful Illinois, arsenic good arsenic a probe halfway successful Urbandale.

John Deere manufactures everything from tractors, harvester harvesters, operation vehicles, mowers and adjacent snowmobiles. The institution is facing backlash implicit its ongoing program to laic disconnected expanding numbers of American workers successful favour of relocating accumulation to Mexico

In galore instances, accumulation that these US workers were liable for is being shifted to caller locations successful Mexico. 

But the institution said Wednesday that the layoffs are unrelated to its accumulation moving to Mexico.

Instead, bosses attributed the occupation cuts to a diminution successful request for tractors and different cultivation equipment, which has resulted from falling harvest prices and farmers reducing their expenditures.

Movement of accumulation to Mexico has attracted the attraction of politicians. 

Donald Trump said successful September that helium volition slap a 200 percent tariff connected John Deere's imports into the US if the institution goes up with plans to determination accumulation to Mexico. 

At the commencement of the year, John Deere employed astir 22,600 salaried and accumulation workers crossed the 2 states.

Employees are furious astatine the cuts.  A longtime John Deere idiosyncratic astatine the Harvester Works works successful East Moline, Illinois, said it comes down to 1 thing: Greed.

'We get upwind of much layoffs daily, it seems, and it's causing uncertainty each over,' said the worker, who stayed anonymous for fearfulness of retaliation.

'The lone crushed for Deere to bash this is greed.' 

 This latest circular of layoffs follows the company’s reduced yearly net outlook announced successful May. 

Increased harvest supplies person pressured atom prices, which leaves farmers with little to put successful caller machinery. 

The institution has pointed to a 20 percent autumn successful income from 2023 to 2024. 

More layoffs are expected  - contempt John Deere raking successful implicit $10 cardinal successful nett successful 2023 portion besides paying CEO John May $26.7 cardinal successful full compensation. 

Laid-off workers get up to 12 months of severance wage - based connected years of work - outgo for unused clip off, and entree to wellness benefits.

John Deere said it is inactive committed to US manufacturing. Bosses pointed to a $2 cardinal concern successful US factories since 2019.

A John Deere mill successful Brazil. The institution is moving accumulation there, arsenic good arsenic Mexico

Inside a  John Deere works successful Ottumwa, Iowa, wherever implicit 100 jobs were chopped this year

 More than 10,000 workers astatine John Deere went connected onslaught for 5 weeks successful 2021. They won a 10 percent rise for hourly earners  and accrued status benefits

In a connection to DailyMail.com Wednesday, John Deere said: 'It is important to enactment these layoffs are owed to reduced request for the products produced astatine these facilities. 

'They are not related to accumulation moves. As we person repeatedly stated, layoffs this fiscal twelvemonth are owed to the weakening workplace system and a simplification successful lawsuit orders for our equipment.'

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