John Deere, the iconic American tractor and farm machinery manufacturer, is set to lay off 238 employees across its Illinois and Iowa factories in the coming weeks, the company confirmed in statements to multiple outlets including Brownfield and Newsweek. This round of workforce reductions, the latest in a string of cutbacks across the agricultural sector, is being attributed to a perfect storm of decreased demand, lower order volumes, and mounting tariff-related expenses that have battered the bottom line of one of America’s most storied brands.
The layoffs will hit three of John Deere’s Midwestern facilities especially hard. According to company disclosures and Worker Adjustment and Retraining Notification (WARN) filings, 115 workers at Harvester Works in East Moline, Illinois, will see their last day on August 29, 2025. Another 52 employees at the Seeding and Cylinder plant in Moline, Illinois, will finish up on September 26. Meanwhile, 71 workers at the Foundry in Waterloo, Iowa, are set to depart by September 19. The total: 238 jobs lost, all in communities where John Deere has been a mainstay for generations.
Why now? As John Deere explained in its statement to Brownfield, "The layoffs are a result of decreased demand and lower order volumes." The company’s recent third-quarter earnings call painted a sobering picture: net income for the quarter dropped 26 percent year-over-year to $1.3 billion, while net sales and revenues fell 9 percent to $12 billion. These figures underscore the tough environment facing manufacturers of agricultural equipment, with the pain felt most acutely in the heartland.
John Deere was candid about the causes. In a statement to Newsweek, the company said, "The struggling ag economy continues to impact orders for John Deere equipment. This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term." The ripple effects of falling commodity prices, ongoing trade disputes, and global economic volatility are converging to sap farmers’ confidence—and their willingness to invest in new machinery.
Tariffs, in particular, have emerged as a major headache. John Deere’s Director of Investor Relations, Josh Beale, laid out the numbers during the company’s earnings call: "Tariff costs in the quarter were approximately $200 million, which brings us to roughly $300 million in tariff expense year to date based on tariff rates in effect as of today." And that’s not the end of it. Beale added, "John Deere's forecast for the pretax effect of tariffs in the current fiscal year was now nearly $600 million," up from an earlier estimate of $500 million. The main culprits? Increased tariff rates on the European Union and India, as well as a sharp jump in tariffs on steel and aluminum imports to 50 percent, imposed by the Trump administration on June 4, 2025.
These trade policy shifts haven’t just hurt John Deere. U.S.-based competitors AGCO and CNH Industrial have also reported weakening sales, blaming both muted industry demand and the impact of tariffs. Yet, it’s important to note that not all sectors of the U.S. economy are suffering equally. As Bloomberg reported, citing Goldman Sachs strategists, aggregate second-quarter earnings per share for S&P 500 companies are up 11 percent from 2024, far surpassing the expected 4 percent gain. The White House, eager to highlight the positives, issued a statement: "Under President Donald J. Trump's bold pro-growth policies, American businesses are thriving like never before—shattering earnings forecasts and propelling the stock market to continued record highs."
Still, for those on the front lines of American agriculture, the story is more complicated. Farmers have been squeezed by lower commodity prices and uncertainty over trade agreements. As CFRA Research analyst Jonathan Sakraida told Reuters, "Tariff uncertainty and deflated commodity prices have made farmers increasingly cautious in spending decisions and more hesitant to accept higher machinery prices." This hesitancy is now reverberating through John Deere’s order books, leading to the painful layoffs announced this week.
Despite the difficult news, John Deere insists it is not abandoning its U.S. manufacturing roots. In both public statements and press releases, the company highlighted its long-term commitment to American industry, noting plans to invest $20 billion into domestic manufacturing capabilities over the next decade. "We remain committed to keeping our U.S. manufacturing footprint strong, viable and competitive," the company told Newsweek, citing the planned investment as a key pillar of its strategy to weather the current storm.
There are also glimmers of hope on the policy front. Josh Beale noted, "Recent ag policy legislation has been positive and potential developments in trade agreements and demand for renewable fuels could also be supportive. However, until there's more stability in the industry, we'd expect customers to continue to take a measured approach to capital investment." In other words, even as lawmakers and industry groups work to shore up the sector, uncertainty remains the order of the day.
For the employees facing layoffs, John Deere says it will offer support. Affected workers are eligible for recall to their home factories if business conditions improve, and will be entitled to employment and health care benefits depending on their length of service. While these measures may soften the blow, the reality is that hundreds of families in Illinois and Iowa will be grappling with sudden job loss as the harvest season approaches.
Looking ahead, the broader question is whether John Deere’s investments and the eventual resolution of trade disputes can restore confidence among farmers and revive demand for new equipment. For now, though, the company—and the communities that depend on it—are bracing for leaner times. As John Deere put it in its statement, "As the entire ag sector navigates these challenges, John Deere continues to provide customers the high-quality equipment they deserve while strengthening the foundations of U.S. manufacturing."
In the end, the fate of John Deere’s workers may hinge as much on the ebb and flow of global trade and commodity markets as on the company’s own plans. For now, the layoffs serve as a stark reminder that even America’s most venerable brands are not immune to the shifting tides of the world economy.