Agricultural and heavy equipment giant John Deere is facing increasing scrutiny and criticism following a series of significant job cuts in the United States and simultaneous plans to expand manufacturing operations in Mexico. While the company denies allegations of freezing U.S. operations and emphasizes its long-term investment commitments in America, the move has ignited widespread concern among labor unions, economists, and communities heavily reliant on Deere's presence.
Over the past year and continuing into early 2025, John Deere has laid off thousands of workers across its facilities in Iowa and Illinois, including major hubs like Waterloo, Davenport, Dubuque, and Moline. In 2024 alone, 2,167 jobs were eliminated in these states, with an additional nearly 200 workers laid off in Iowa during the first week of January 2025, and 386 statewide since the year began. The company attributes these layoffs to a "weakened farm economy" and a decline in customer demand, asserting that the job reductions are unrelated to production shifts abroad.
However, compounding the impact of these layoffs, John Deere announced in June of last year that it would relocate its skid steer and track loader manufacturing from its Dubuque, Iowa, facility to a new plant in Ramos, Mexico, by the end of 2026. This relocation will affect Dubuque workers, with the exact number of layoffs dependent on future production levels, attrition, and the company's ability to reassign employees to other roles. Furthermore, in November, Deere confirmed plans to build a $55 million plant in Nuevo León, Mexico, specifically for mini track loaders and mini wheel loaders, with operations slated to begin in 2026. Gecimar Morini, Deere’s regional manager for Mexico, Central America, and the Caribbean, affirmed that this project would proceed "regardless" of U.S. political developments.
In an effort to counter the growing criticism, John Deere is actively promoting its continued investments in the U.S. The company has explicitly denied rumors of "freezing operations" in the U.S., stating, "Let’s clear the air. John Deere is not shutting down U.S. manufacturing. In fact, it’s quite the opposite." They highlight a recent commitment to invest $20 billion into American manufacturing over the next decade, which includes modernizing and expanding U.S. operations across more than 60 facilities in 16 states. These investments are intended to focus on automation, advanced manufacturing technologies, and workforce development.
Despite these assurances and planned investments, the sweeping changes to John Deere’s U.S. workforce have undeniably created a climate of uncertainty and outrage.
