Deere Reduces Workforce While Growing Operations in Mexico

John Deere, an American manufacturer of agricultural, construction, and forestry equipment, has denied reports claiming it is freezing operations in the United States, labeling the assertion as a myth. However, over the past year, the company has laid off thousands of employees and announced plans to shift a portion of manufacturing to Mexico, sparking concerns about the future of its U.S. workforce.

In 2024, John Deere cut 2,167 jobs across facilities in Iowa and Illinois, including locations in Waterloo, Davenport, Dubuque, Ankeny, Ottumwa, Moline, and East Moline, as reported by Investigate Midwest. Layoffs have continued into 2025—nearly 200 workers lost their jobs in Iowa during the first week of January alone, and 386 employees have been laid off across the state since the start of the year. At the Ankeny plant, 119 workers out of approximately 1,500 were laid off between March and April.

Deere has attributed the layoffs to a “weakened farm economy” and a decrease in customer demand, stating that the job cuts were unrelated to production shifts abroad.

Simultaneously, John Deere announced last June that it would relocate its skid steer and track loader manufacturing from a facility in Dubuque, Iowa, to a new site in Ramos, Mexico, by the end of 2026.

Deere informed KCRG, an ABC affiliate in Cedar Rapids, Iowa, that workers in Dubuque will be affected since some construction and forestry operations will move to the Mexican factory. The exact number of related layoffs in Dubuque, according to Deere, will depend on production levels, attrition, and Deere’s capacity to reassign certain workers to different roles by 2026.

In response to the announcement, then-presidential candidate Donald Trump threatened to impose a 200 percent tariff on Deere equipment produced in Mexico if the company proceeded with its manufacturing move. He later claimed that Deere canceled its offshoring plans in response, yet the company stated it had not changed its plans and has shown no signs of retreating.

In November, John Deere confirmed its intention to establish a US$55 million plant in Nuevo León, Mexico to manufacture mini track loaders and mini wheel loaders, as reported by Mexico Now and Mexico Daily News. Gecimar Morini, Deere’s regional manager for Mexico, Central America, and the Caribbean, stated that the project would proceed “regardless” of political developments in the U.S., with operations set to commence in 2026.

Labor leaders and economists have criticized the layoffs. United Auto Workers (UAW) Local 838 President Tim Cummings urged Deere to bring outsourced jobs “back to our factories,” and the labor union issued an official statement denouncing the layoffs and job cuts as “an insult to the working-class people of Iowa and Illinois.” Economic analyst Nicholas Cocozzelli claims that John Deere is selling out Iowans to boost their profits.

Amidst criticism, Deere is emphasizing its U.S. investments. “Let’s set the record straight. John Deere is not shutting down U.S. manufacturing. In fact, it’s the opposite,” the company stated in a notice on its website. The notice further highlights Deere’s recent commitment to invest US$20 billion in American manufacturing over the next decade.

However, John Deere’s significant changes to its U.S. workforce have generated both uncertainty and outrage, devastating communities that have been established around the company’s presence, leaving hundreds of families questioning how they will manage rent, put food on the table, and find new sources of income.

Articles like the one you just read are made possible through the generosity of Food Tank members. Can we please count on you to be part of our growing movement? Become a member today by clicking here.

Photo courtesy of Yaroslav Muzychenko, Unsplash