John Deere Cuts Thousands of Midwest Jobs, Shifts Production to Mexico Through 2026
First reported: 2026-03-08 Section: M — Named Customer & End Market Intelligence
John Deere & Company (NYSE: DE) has been executing a significant restructuring of its North American manufacturing footprint, cutting thousands of Midwest jobs while expanding operations in Mexico. Since 2024, Deere has eliminated over 4,500 jobs in Iowa and Illinois — including major hubs in Waterloo, Davenport, Dubuque, and Moline — with layoffs continuing through early 2025 and into fiscal 2026. A new $55 million facility in Nuevo León, Mexico is under construction to produce mini track loaders and mini wheel loaders. Deere's skid steer and track loader production is being moved from Dubuque, Iowa to a new Ramos, Mexico facility by end of 2026. The company also announced a wage freeze for all salaried employees for fiscal year 2026 — an unusual move for a company of Deere's scale.
The production shift is occurring against a backdrop of agricultural equipment demand weakness, with Deere reporting declining sales across multiple quarters. Deere guided for fiscal 2026 net income of $5.0–5.5 billion, down significantly from prior peak years. The company is rationalizing its Iowa and Illinois footprints — with additional job relocations from Ottumwa and Des Moines Works announced for fiscal year 2026 as product verification and testing functions consolidate at other facilities.
John Deere's Moline, Illinois headquarters and core agricultural equipment manufacturing operations are approximately 140 miles from Steel Warehouse's South Bend headquarters, and Deere's Midwest manufacturing network consumes significant volumes of structural steel, flat-rolled steel, and steel tubing for equipment frames, arms, cabs, and implements.
Why It Matters for Steel Warehouse / Wright Metal Products
John Deere is a critical end market customer for the Lerman Enterprises network — particularly for Wright Metal Products, which manufactures steel crates and returnable containers for lawn & garden and powersports OEM customers. Deere's production shifts and layoffs have a direct pass-through effect: - Reduced Midwest production = reduced crate/container demand for Wright Metal Products from Deere's Iowa and Illinois plants - New Mexico production = potential new geographic market for Wright, but also potential competition from Mexican packaging suppliers and a more complex cross-border logistics picture - Structural steel and tubing: Lock Joint Tube serves construction and industrial OEM markets — Deere-adjacent companies (equipment dealers, construction equipment makers) may see downstream effects - The agricultural equipment cycle downturn is a headwind across the 2025–2026 period for any SW subsidiary serving this vertical
Sources
- John Deere Cuts Thousands of U.S. Jobs While Expanding in Mexico — Food Tank
- John Deere Layoffs Continue Amid Sales Downturn — AgWeb
- John Deere Announces Hundreds of Layoffs — Newsweek
- No Pay Raise for Salaried Employees at John Deere in 2026 — HR Digest
Update — 2026-03-08
Initial entry — story first created. Agricultural equipment demand weak through 2026. Wright Metal Products crate demand from Deere Midwest plants at risk. Mexico production shift creates new geographic complexity.