John Deere announced it is preparing job cuts in two U.S. states. The layoffs will affect about 610 employees who will lose their jobs (their last day will be August 30).

280 employees belong to the plant in East Moline (Illinois), another 230 workers are part of a factory in Davenport (Iowa), and "about 100 production employees at the company's plant in Dubuque, Iowa, will also be affected," according to Fox.

The move comes amid "rising operating costs and declining market demand," according to a company statement.

Company moves factory to Mexico

"Earlier this month, Deere announced that it will move the manufacture of skid steer loadersand compact belt loaders from its Dubuque facility to Mexico by the end of 2026," the report said.

The company disclosed that the decision was due to "its efforts to evolve its business model, address rising manufacturing costs and improve operational efficiencies," Fox reported.

Decreasing revenue

In May of this year, Deere lowered its earnings outlook as farmers bought fewer tractors and other equipment because of falling prices for their crops.

The profit forecast was cut to $7 billion (from an expected $7.75 billion). Prior to that, the company had estimated $8.25 billion in profit for 2024.