ROLL IN TONIGHT. JOHN DEERE IS PLANNING TO LAY OFF MORE THAN 300 PEOPLE ACROSS OUR STATE IN THE NEXT MONTH. THE COMPANY HAS ALREADY CUT MORE THAN 450 POSITIONS THIS YEAR. THAT INCLUDES 150 JOBS IN ANKENY. KCCI’S ETHAN HUMBLE TALKED WITH A FINANCIAL EXPERT TO HEAR WHAT LED TO THE CUTS. WE FOUND A LETTER SENT TO ALL JOHN DEERE EMPLOYEES AND CONFIRMED IT WITH ONE WORKER IN IT. THE COMPANY SAYS IT DOESN’T TAKE THESE DECISIONS OR ACTIONS LIGHTLY. ALSO SAYING IT’S A NECESSARY STEP THAT MUST BE TAKEN TO ENABLE THE LONG TERM HEALTH OF THE BUSINESS. IT’S DEFINITELY NOT GOOD. IT’S DEFINITELY NOT A POSITIVE. JOHN DEERE HUNDREDS OF WORKER LAYOFFS ARE COMING QUICKLY, AND MATTHEW MITCHELL, A FINANCIAL EXPERT AND PROFESSOR OF STRATEGY AT DRAKE UNIVERSITY, SAYS THEY’RE HAPPENING DUE TO A NUMBER OF FACTORS A CHALLENGING MARKET ENVIRONMENT, DECLINING DEMAND, HIGHER INTEREST RATES. ACCORDING TO THE IOWA WORKFORCE DEVELOPMENTS, WARN NOTIFICATION MEANS THE COMPANY WILL BE CUTTING 240 POSITIONS FROM ITS WATERLOO LOCATION IN THE NEXT MONTH ALONE. IT WILL ALSO BE DROPPING 58 WORKERS IN URBANDALE AND 16 IN ANKENY. THEY’VE TAKEN SOME OF THESE DECISIONS, YOU KNOW, FOCUSING ON ON COST S, FOCUSING ON A HIRING FREEZE. THE NUMBERS INCLUDE BOTH PRODUCTION AND OFFICE WORKERS. WHEN WE SEE THESE NUMBERS, THEY CAN LOOK BIG. BUT COMPARED TO THEIR FULL EMPLOYMENT IN IOWA, JOHN DEERE STILL REMAINS COMMITTED TO IOWA. MIKE SECKINGER HAS SOLD JOHN DEERE PRODUCTS AT VANWALL EQUIPMENT AND URBANDALE FOR 28 YEARS. HE SAYS HE’S EXPECTING THE COMPANY TO BOUNCE BACK FROM THE TOUGH TIME. I THINK, JOHN, YOU’RE STRONG ENOUGH THAT IN THE LONG HAUL IT’S GOING TO BE GOOD. IT ALWAYS HAS BEEN, MITCHELL TELLS ME THE LAYOFFS ARE A MEASURED RESPONSE FROM JOHN DEERE, AND EXPECTS THE MANUFACTURING GIANT TO GROW OVER THE NEXT TEN YEARS. BACK TO YOU. WE DID REACH OUT TO JOHN DEERE BUT HAVE NOT HEARD BACK. WE ALSO REACHED OUT TO THE UNITED AUTO WORKERS UNIONS
John Deere announces additional layoffs at Iowa locations
Iconic Iowa brand John Deere announced this week layoffs at several of its locations, confirming plans in a May 31 email to employees. The layoffs, according to Iowa Workforce Development, will affect the following sites: John Deere Waterloo Works: 192 workers on June 21 John Deere Des Moines Works in Ankeny: 16 workers on June 6 John Deere Intelligent Solutions in Urbandale: 58 workers on June 6 John Deere Waterloo Works: 49 workers on June 6The global company employs 70,000 worldwide, so the Iowa numbers represent a small part of the entire workforce, said Matthew Mitchell, a Drake University professor of strategy. “I would characterize these actions is as measured as planful. They started with a hiring freeze and now only recently have announced layoffs. And I think they’ve pursued a lot of activities before coming to this decision to have layoffs,” Mitchell said, “focusing on cost control, trying to right sizing, production, hiring, freeze.”John Deere reported net income of $2.370 billion in its second-quarter earnings in May. The company forecasted net income for fiscal 2024 to be about $7 billion. The construction industry remains consistent while global ag and turf demands are not as strong, the company said. The layoffs come after the company announced 190 workers would lose their jobs later this month. The company also announced more than 300 layoffs in April.» Download the free KCCI app to get updates on the go: Apple| Google PlayGet the latest headlines from KCCIIt’s concerning to Mike Schechinger, the store manager for the Van Wall Equipment location at 100th Street and Douglas Avenue in Urbandale. “It’s definitely not a positive,” he said in the showroom surrounded by green and gold mowers and equipment. He has worked there for 28 years. “I know that there have been some ebbs and flows over the years, you know, decades with layoffs, reductions in force and that kind of thing. And then people being recalled in back in.”Spring sales were good, he said. It’s difficult to forecast if there would be any impact to his business. “I hate to see it, but hopefully that’ll turn around and it’ll come back,” Schechinger said.Iowa manufacturing remains strong overall, said Association of Business and Industry President Mike Ralston. “I expect that other employers will be able to bring the former Deere workers on board and that Deere itself, down the road, will be looking to hire again,” he said.
Iconic Iowa brand John Deere announced this week layoffs at several of its locations, confirming plans in a May 31 email to employees.
The layoffs, according to Iowa Workforce Development, will affect the following sites:
- John Deere Waterloo Works: 192 workers on June 21
- John Deere Des Moines Works in Ankeny: 16 workers on June 6
- John Deere Intelligent Solutions in Urbandale: 58 workers on June 6
- John Deere Waterloo Works: 49 workers on June 6
The global company employs 70,000 worldwide, so the Iowa numbers represent a small part of the entire workforce, said Matthew Mitchell, a Drake University professor of strategy.
“I would characterize these actions is as measured as planful. They started with a hiring freeze and now only recently have announced layoffs. And I think they’ve pursued a lot of activities before coming to this decision to have layoffs,” Mitchell said, “focusing on cost control, trying to right sizing, production, hiring, freeze.”
John Deere reported net income of $2.370 billion in its second-quarter earnings in May. The company forecasted net income for fiscal 2024 to be about $7 billion. The construction industry remains consistent while global ag and turf demands are not as strong, the company said.
The layoffs come after the company announced 190 workers would lose their jobs later this month. The company also announced more than 300 layoffs in April.
» Download the free KCCI app to get updates on the go: Apple| Google Play
Get the latest headlines from KCCI
It’s concerning to Mike Schechinger, the store manager for the Van Wall Equipment location at 100th Street and Douglas Avenue in Urbandale. “It’s definitely not a positive,” he said in the showroom surrounded by green and gold mowers and equipment. He has worked there for 28 years. “I know that there have been some ebbs and flows over the years, you know, decades with layoffs, reductions in force and that kind of thing. And then people being recalled in back in.”
Spring sales were good, he said. It’s difficult to forecast if there would be any impact to his business. “I hate to see it, but hopefully that’ll turn around and it’ll come back,” Schechinger said.
Iowa manufacturing remains strong overall, said Association of Business and Industry President Mike Ralston.
“I expect that other employers will be able to bring the former Deere workers on board and that Deere itself, down the road, will be looking to hire again,” he said.
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