Following weeks of speculation, John Deere confirmed Friday that 238 employees will be laid off across three facilities in Illinois and Iowa. The company pointed to weak order volumes linked to the struggling U.S. farm economy as the main driver of the cuts.

The layoffs will affect:

• Harvester Works, East Moline, Ill.: 115 jobs, effective August 29

• Seeding and Cylinder, Moline, Ill.: 52 jobs, effective September 26

• Foundry, Waterloo, Iowa: 71 jobs, effective September 19

Deere Statement on Market Conditions

In a statement, the company acknowledged that "the struggling ag economy continues to impact orders for John Deere equipment," adding that reduced demand for machinery is putting pressure on operations.

Despite the cuts, the manufacturer emphasized its long-term commitment to U.S. manufacturing, highlighting $20 billion in planned investments over the next decade to modernize and expand facilities nationwide.

Support for Laid-Off Employees

John Deere noted that affected employees may be recalled based on seniority and factory needs. In addition, laid-off workers will receive supplemental income payments and up to six months of healthcare coverage.

This announcement follows confusion earlier this summer when erroneous reports suggested more than 800 layoffs in Illinois. The Illinois WARN office has since issued an apology, attributing the overstatement to an internal error.

Industry Context

The layoffs come amid a broader slowdown in the U.S. agricultural economy, where farmers face falling commodity prices, high input costs, and tighter margins. Demand for new machinery has weakened, forcing manufacturers like Deere to scale back.

Still, Deere executives maintain that the company is positioning itself for future growth, even as near-term pressures reshape the farm equipment market.