More Layoffs for John Deere, Company Committed to Future U.S. Investment

In August, CNBC reported that John Deere was at a “crossroads.” The report said, “the company continues to see weaker demand in the agricultural sector even while it has committed to investing millions in U.S. manufacturing and promised a brighter road ahead.”

John Deere had warned on its earnings call that demand for its farm equipment was soft and the company was experiencing major decreases in net income and sales compared to the previous year.

Many Farmers Are Pessimistic and Are Delaying Major Purchases

Adam Chappell is one of the farmers not looking to make any major purchases from John Deere. Chappell shared his bleak situation with American Farmland Owner.

“If you're breaking even, and you're able to pay your operating note…and all your bills this year,” Chappell said. “I think that is a huge win.”

But Chappell was increasingly pessimistic about whether he would see that “win” or whether many of his fellow producers would either.

He used to farm 8,000 acres in rural Arkansas with his brother, Seth. But Seth recognized a few years ago that the industry would likely not be able to support their operations that primarily relied on income from depressed commodity prices in rice, corn, and soybeans.

RELATED: Hear Adam Chappell describe the emergency meeting that surprised him and why it demonstrated how many farmers aren’t sure if they can survive much longer.

John Deere: Expecting $600 Million Loss from Trump Tariffs

John Deere has also told investors that it could lose $600 million from increased tariffs implemented by President Donald Trump’s administration.

The company announced that it would lay off another 141 in two of its Iowa facilities. October 17 will be the last scheduled day of work for 101 employees at its plant in Waterloo.

October 31 will be the final scheduled day for 40 other workers at the company’s facility in Ankeny.

John Deere has confirmed a nearly constant stream of worker reductions over the past several years after the initial burst of economic activity for some tractors after the COVID-19 shutdowns.    

A previous announcement from the company already stated that 71 workers at a John Deere facility in Waterloo no longer have a job after September 18.

Despite laying off several thousand workers, the company has insisted that it remained committed to investing in the United States.

“We’re making a bold move by investing $20 billion into U.S. manufacturing over the next 10 years. That’s a powerful signal of our long-term commitment to building and growing right here at home,” the company’s website stated.

“Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities,” said John May, chairman and CEO of John Deere.

May added in the statement, “Over the next decade, we will continue to make significant investments in our core U.S. market. This underscores our dedication to innovation and growth while staying cost-competitive in a global market.”

RELATED: This Midwest industry executive has been tracking tractor sales and other big ag ticket items for years.More Layoffs for John Deere, Company Committed to Future U.S. Investment

In August, CNBC reported that John Deere was at a “crossroads.” The report said, “the company continues to see weaker demand in the agricultural sector even while it has committed to investing millions in U.S. manufacturing and promised a brighter road ahead.”

John Deere had warned on its earnings call that demand for its farm equipment was soft and the company was experiencing major decreases in net income and sales compared to the previous year.

Many Farmers Are Pessimistic and Are Delaying Major Purchases

Adam Chappell is one of the farmers not looking to make any major purchases from John Deere. Chappell shared his bleak situation with American Farmland Owner.

“If you're breaking even, and you're able to pay your operating note…and all your bills this year,” Chappell said. “I think that is a huge win.”

But Chappell was increasingly pessimistic about whether he would see that “win” or whether many of his fellow producers would either.

He used to farm 8,000 acres in rural Arkansas with his brother, Seth. But Seth recognized a few years ago that the industry would likely not be able to support their operations that primarily relied on income from depressed commodity prices in rice, corn, and soybeans.

RELATED: Hear Adam Chappell describe the emergency meeting that surprised him and why it demonstrated how many farmers aren’t sure if they can survive much longer.

John Deere: Expecting $600 Million Loss from Trump Tariffs

John Deere has also told investors that it could lose $600 million from increased tariffs implemented by President Donald Trump’s administration.

The company announced that it would lay off another 141 in two of its Iowa facilities. October 17 will be the last scheduled day of work for 101 employees at its plant in Waterloo.

October 31 will be the final scheduled day for 40 other workers at the company’s facility in Ankeny.

John Deere has confirmed a nearly constant stream of worker reductions over the past several years after the initial burst of economic activity for some tractors after the COVID-19 shutdowns.    

A previous announcement from the company already stated that 71 workers at a John Deere facility in Waterloo no longer have a job after September 18.

Despite laying off several thousand workers, the company has insisted that it remained committed to investing in the United States.

“We’re making a bold move by investing $20 billion into U.S. manufacturing over the next 10 years. That’s a powerful signal of our long-term commitment to building and growing right here at home,” the company’s website stated.

“Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities,” said John May, chairman and CEO of John Deere.

May added in the statement, “Over the next decade, we will continue to make significant investments in our core U.S. market. This underscores our dedication to innovation and growth while staying cost-competitive in a global market.”

RELATED: This Midwest industry executive has been tracking tractor sales and other big ag ticket items for years.