(Bloomberg) -- Deere & Co. is laying off an additional nearly 300 people in Iowa and Illinois as demand for farm equipment slows from the peak production of recent years.
It’s the latest round of layoffs this year for the world’s top agricultural machinery maker, after it slashed its annual earnings outlook in May. An expansion in crop supplies this year has pressured grain prices, leaving farmers with less to spend on new gear.
The move is unrelated to plans to shift some of its production from the US to Mexico, Deere said in a statement. Former President Donald Trump has threatened to hit the company with steep tariffs if it moves jobs to Mexico. Deere has said it is committed to US manufacturing.
“It is important to note these layoffs are due to reduced demand for the products produced at these facilities,” the company said Wednesday. “As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy.”
Deere said it boosted its work force when demand surged during the Covid-19 pandemic, which roiled supply chains, only for the farm economy to start slowing.
About 200 production workers will be laid off in East Moline, Illinois; 80 workers in Davenport, Iowa; and seven in Moline, Illinois.
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