Rithwick Lakshmanan

A John Deere tractor with an unemployed stamp on it.

Over 600 John Deere employees in East Moline and Davenport offices were laid off on short notice during August. John Deere is the backbone of the Quad Cities’s economy, and this drastic upheaval left hundreds of families shaken up and unsure about their future.

This change was inevitable with the declining agricultural market, increased inflation and higher interest rates. “John Deere, like many others in our industry, faces significant economic challenges,” Deere stated in their report to Illinois officials. John Deere acknowledged that reducing its workforce was a tough decision, but pointed to industry-wide challenges. 

However, workers have expressed frustration regarding Deere’s decision to move its production to Mexico. Deere reported that this was due to the reduced profits from the USA market even though the company reported over $10 billion in profit for the fiscal year of 2023. The company also spent $7.2 billion on stock buybacks in 2023 and provided shareholders with over $1.4 billion in dividends. Despite these figures, layoffs continued to impact hundreds of workers.

Prajay Gutti, a senior whose father was laid off, expressed his concern when he heard the news. “My dad has been working at Deere for over 10 years. It’s scary to think about what will happen next.” Gutti’s dad fortunately was hired at a different company. 

Another student, junior Vrayas Pila, shared similar concerns after hearing the news. “When I heard the news I prayed that friends and I weren’t affected. But a lot of people I knew did end up getting laid off,” Pila stated. Fortunately, he was not affected by the layoffs. 

However, this didn’t stop John Deere from taking another approach to reduce their spending. Employees who weren’t laid off were hit with a salary reduction, inciting further outrage. Even the promised severance pay and payment for unused vacation didn’t justify the over 1500 employees cut from the workforce globally. 

While not yet certain, the company stated that based on the fourth-quarter earnings, more cost-cutting measures could be in the near future. While the Quad Cities community was not as badly affected by the layoffs as others, many families including the Guttis and Pilas are still waiting to see if more troubles are to come.