John Deere Layoffs: Global staff cut as sales decline, production shifts to Mexico

What’s happening at John Deere?

John Deere is laying off a large number of salaried employees across its global workforce today, but the company is not saying how many are losing their jobs. Employees across the company were called in to morning meetings on Wednesday, reports the Quad-City Times and numerous other media outlets.

In a recent statement, Deere attributed the need for action to economic challenges, rising costs, and a 20% decline in sales from 2023 to 2024.

Official statements and context

In a statement Wednesday, John Deere said “as the largest global manufacturer of agricultural equipment, John Deere, like many others in our industry, faces significant economic challenges, rising operational and manufacturing costs, and reduced customer demand,” according to the Des Moines Register.

The economic challenges “have unfortunately forced us to make tough decisions including layoffs at John Deere production facilities and reductions in our global salaried workforce,” the manufacturer said.

On July 15, Deere announced in a letter that starting Wednesday, the company would be “implementing additional global salary workforce reductions.” The letter asked salaried employees to work from home Wednesday to Friday and postpone any business travel.

John Deere has promised the following support for employees impacted in the US:

• Up to 12 months of severance based on years of service.
• Pro-rated short-term incentive (STI) and long-term incentive cash (LTIC) compensation benefits.
• Payment for any earned and unused vacation or paid time off.
• Ongoing health and wellness benefits.
• 12 months of professional job placement services.

“While the decision to reduce roles across the company was a challenging one, the company is confident that these adjustments, coupled with our ongoing efforts to reduce costs and align production and inventory levels, will position John Deere strongly for the future,” stated the company.

Shifting production

Since September 2023, more than 1,600 John Deere employees have been laid off from plants across the United States. US workers have accused the company of acting on “greed” as it continues to shift manufacturing and production to Mexico.

Layoffs in Canada

It remains unclear exactly how many John Deere employees in Canada will lose their job as a result of this layoff.

Your rights

In Canada, non-unionized employees at John Deere are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, WillScot of Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.