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Deere lays off another 112 workers at Waterloo plant
Deere layoffs now total more than 3,100 as farm economy struggles
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WATERLOO — Deere & Co. announced Tuesday the company will lay off indefinitely 112 workers effective Jan. 3.
Deere cited reduced demand for equipment and a $3 billion loss for fiscal 2024 in a statement announcing the layoffs.
According to numbers posted on the Iowa Worker Adjustment and Retraining Notification Act website, 112 manufacturing employees at Deere Waterloo Operations, 3500 E. Donald St., are affected. Deere's Waterloo Operations currently employs 4,700 workers, 2,700 of them in production and maintenance.
Deere has announced layoffs of more than 3,100 workers companywide since October 2023, with more than 1,000 of those positions in the Cedar Valley.
"As was recently stated in our fourth quarter earnings report, challenging market conditions continue to result in reduced demand for our equipment with net income down $3B in FY24," Deere said in the statement.
"To remain globally competitive, we must continue making workforce adjustments as needed to our manufacturing footprint. Today, we’ve informed employees at our Waterloo Operations that approximately 110 production employees will be placed on indefinite layoff effective Jan. 3."
The statement notes the U.S. Department of Agriculture forecasts major row-crop cash receipts will drop another 18 percent in 2024 following a 5 percent decline last year.
The USDA also forecasts average prices for crops harvested this fall will continue to decline, down more than 30 percent from last year, with corn prices down 37 percent from 2022, soybeans down 24 percent and wheat down 35 percent.
The company also noted that despite some reductions, current interest rates are elevated compared with recent history.
The company stated employees are eligible to be recalled for a period equal to their length of service. Those laid off automatically are placed in seniority order for openings they are qualified to perform at the factory.
Benefits for laid-off employees
Laid-off employees will receive the following monetary benefits, the company said:
- Supplemental unemployment pay, which covers about 95 percent of weekly net pay for up to 26 weeks, depending on years of service.
- Transitional assistance pay, which covers 50 percent of average weekly earnings for up to 52 weeks after the supplemental pay runs out.
- Profit-sharing, calculated based on hours worked, average earnings and the company's profit margin, if the employee has at least one year of service by the end of the plan year.
Health care benefits employees can receive during a layoff include:
- Employees can keep health care coverage for at least six months, or as long as they are eligible for supplemental pay, whichever is longer. After that, they can extend their coverage for another 12 months, but they have to pay the full premiums themselves.
- Weekly indemnity: Employees who become disabled while on the layoff can get benefits for the same duration as their supplemental pay, up to 26 weeks, if they meet the requirements.
- Employee assistance program: Employees and their household members can access services for the duration of their recall rights. The program provides up to eight sessions of in-person or virtual therapy per year.
Laid-off employees also may receive life insurance, legal assistance, tuition reimbursement and job-placement assistance.
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