Let the era of terminations begin.

Ever since COVID-19 struck the world in 2020, the following four years have seen a massive rise in layoffs from several companies. One such company recently laid off more than 500 employees in Waterloo, Cedar Rapids, and Dubuque. That company is John Deere.

John Deere is known for selling equipment used in agriculture, construction, and lawn care as well as manufacturing engines and other components for infrastructure and industrial equipment.

Last week, it was reported the company laid off over 500 employees across eastern Iowa, and recently it has been reported that 300 employees will be laid off in Illinois. As of now, the total employment number at John Deers is around 1,993. The good news is most of those employees were told in advance and received their severance packages.

The bad news is around 500 people are now unemployed — not good. The company explained it saw a net income decline of 17 percent and a sales decline of 20 percent. The company had issued the following statement:

“As the largest global manufacturer of agricultural equipment, John Deere, like many others, faces significant economic challenges, rising operational and manufacturing costs, and reduced customer demand, including a 20 percent decline in sales from 2023 to 2024.”

While it is true that we live in economically challenging times, the solution is innovation, not termination. Laying off your employees for a mere 20 percent decline in sales is a terrible idea since it draws undesired attention and makes the problem even worse.

However, many people use John Deere — especially in a state like Iowa, populated with farmers and workers. The precedent has to be “make better products over cutting corners.”

To make matters worse, John Deere also announced the manufacturing of skid steer loaders and compact track loaders would be outsourced from Dubuque and to Mexico. It looks like the company is outsourcing American jobs to other countries, and it seems like money over reputation is a priority.

Though the company has insisted these layoffs and the Mexico facility are all necessary for the good of the company, it’s mighty suspicious how the main point of contention was the 20 percent decrease in sales. John Deere made 10.2 billion dollars in profits last year alone. That is estimated to be a 42 percent increase from 2022.

All of these decisions are simply adding fuel to the fire. The company is doing well, and nothing is reasonable enough to justify all these layoffs and outsourced jobs. The natural and logical conclusion is that John Deere simply lacks respect for its employees and is simply letting them go to save as much money as possible as their bank accounts skyrocket.

The Securities and Exchange Commission has shown that John Deere CEO John May earned $26.7 million in total compensation.

While it is true that inflation, interest rates, and operating costs are increasing in this current U.S. economy, that is no excuse to fire the employees who have worked hard to make the company’s precious money for its superiors.

This is an era where innovation is thrown on the grass and cut down by the tractors in favor of terminated employees. Saving money is not a bad thing, unless it is at the expense of those who worked to make said money. Now, John Deere’s reputation will live in infamy.

Companies can only thrive when they strive for innovation, make better products for consumers, but also treat their workers with the respect that they deserve.

Guess we all live and learn.