Deere will lay off 238 employees across factories in Waterloo, Iowa, and Moline and East Moline, Illinois. The move follows weaker financial results and higher costs that have reshaped the company’s 2025 outlook.

Deere reported a 26% drop in net income alongside a 9% decline in sales so far this year. Management linked the downturn to softer commodity prices that have tempered producer purchases and to a sharp rise in tariff expenses.

“Tariff costs in the quarter were approximately $200 million, which brings us to roughly $300 million in tariff expense year to date,” said Josh Beal, Director of Investor Relations at Deere.

The company now expects tariff costs to reach $600 million in 2025, up from a prior forecast of $500 million. Those costs are part of a broader trade backdrop. Since April, the U.S. has imposed wide-ranging tariffs of 10%–50% on most imports, with higher rates for dozens of countries and industries. The average tariff rate is now estimated at 18.6%, the highest since 1933.

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The Ankeny facility employs about 1,500 workers, according to the company.

In its statement, Deere said the layoffs, the latest round in the past year of about 2,000 job cuts at its plants across Iowa, continue to be the result of a struggling farm economy — not shifts of work elsewhere. Deere previously has been criticized for moving some lines of production from its Waterloo and Ottumwa plants to Mexico, and drew a September threat from then-presidential candidate Donald Trump of a 200% tariff on products it makes in that country.

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Deere is also buying land in Ramos, Mexico to build a factory that will take over some of the production currently done in its Dubuque Works facility in Iowa. According to a Yahoo!Finance report, “‘Deere says that ‘when the facility is operational in 2026, production of mid-frame skid steer loaders and compact track loaders will be relocated from Dubuque Works to Ramos.'”

Other layoffs announced include:

• John Deere Des Moines Works, Ankeny, 16 employees
• John Deere Intelligent Solutions, Urbandale, 58 employees
• John Deere Waterloo Works, Waterloo, 49 employees

The company also announced more than 300 layoffs in April.

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John Deere ISG leads the design and manufacture of custom, integrated electronic solutions for Original Equipment Manufacturers. The division was created in 1987 and was based in Fargo, North Dakota, before moving to Urbandale.

Additionally, John Deere has confirmed with News 8 WQAD in Moline that over 120 production workers in Moline will be placed on indefinite layoff effective June 28.

One of John Deere’s chief rivals in farm equipment manufacturing, CNH Industrial, is itself the subject of rumors the company intends to lay off 25% of it’s workforce based in Racine County, Wisconsin. Its flagship farm equipment brand, Case IH, was founded in 1842 in Racine.

Unconfirmed sources on the Reddit community r/johndeere are reporting a global all ISG employee meeting is scheduled for Friday, June 7 at 9:30 central. The purpose of that call has not been confirmed.

Iowa’s WARN Act requires employers with 100 or more employees to give 60 calendar day written notice when there is a plant closing or mass layoff. The filing shows a notification date of June 6, 2024, meaning the affected ISG employees due to be notified on June 6 will no longer have a position effective August 7, 2024.

This is on top of recent reporting by AgDay TV Host Clinton Griffiths that the equipment manufacturer has offered 103 early retirement buyouts and eliminated 650 total jobs across its Iowa operations as of June 1. John Deere has also announced its intention to move its production of mid-frame skid steer loaders and compact loaders from its plant in Dubuque, Iowa, to a proposed new production facility in Mexico.

AgDay TV also notes that a total of 773 layoffs have been reported to the state of Iowa in 2024. John Deere employs a global workforce of 70,000 people.

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