Why is John Deere Recalling Laid-off Factory Employees?

John Deere has announced the strategic rehiring of 99 previously laid-off employees to its manufacturing facilities in Eastern Iowa, marking a significant shift in the company's workforce planning approach following a period of redundancies.

The workers will return to the machinery manufacturer's Davenport and Dubuque Works sites starting in early February 2026. 

The recall represents a direct response to increased demand across the firm's construction and forestry divisions, according to Mark Dickson, Vice President of Manufacturing Earthmoving.

The rehiring decision comes as part of a broader workforce expansion strategy tied to significant capital investments across multiple US locations, raising questions about long-term workforce planning and the challenges of maintaining talent pipelines during periods of fluctuating demand.

Workforce expansion tied to facilities investment

The recall of the Iowa-based employees follows announcements about manufacturing expansion across multiple states. 

The company is establishing a parts distribution centre near Hebron, Indiana, alongside a new excavator factory on its campus in Kernersville, North Carolina.

The projects, scheduled for completion next year, could generate hundreds of manufacturing and logistics positions. 

John May, Chairman and CEO of John Deere, says in a press release: "Our investment in these new facilities underscores John Deere's dedication to strengthening the backbone of American industry and supporting local economies."

The Indiana distribution centre is expected to create approximately 150 jobs focused on supply chain and logistics operations. 

Denver Caldwell, VP of Aftermarket and Customer Support, says: "This new facility is an investment in customer expectations around world class product support through parts availability for our US-based agriculture, construction, forestry, mining and turf customers."

The strategic positioning of these facilities reflects the company's commitment to enhancing operational efficiency and customer service across its diverse product portfolio.

Repatriating production and talent requirements

The US$70m investment in the Kernersville factory enables the company to handle production of next-generation excavators previously manufactured in Japan. 

When operational in late 2025, the campus will produce the only excavator designed, developed and manufactured entirely within the US.

Ryan Campbell, President of Worldwide Construction and Forestry and Power Systems, says: "We are excited to bring this new facility to our Kernersville campus and to be part of the region's thriving manufacturing community." 

He adds: "Our focus will be on delivering excellence, creating jobs and advancing the legacy of John Deere in American manufacturing."

The workforce implications of reshoring production could include requirements for specialised skills training and knowledge transfer from international operations.

This repatriation strategy aligns with broader industry trends towards domestic manufacturing and reduced supply chain vulnerabilities.

Targeted talent deployment in Iowa

In Iowa, the staff recalls will support specific high-demand production lines requiring particular skill sets. 

The Davenport Works, which houses six production lines for motor graders, skidders and wheeled feller bunchers, will welcome 75 employees.

These roles span fabrication, machining, welding and material handling for articulated dump trucks. 

The Dubuque Works, a 3.9 million-square-foot facility manufacturing backhoes and crawlers, will add 24 employees specifically for production-class dozer assembly.

The targeted nature of the recalls suggests the company is prioritising workers with existing knowledge of specific production processes.

The expansion forms part of a decade-long capital expenditure programme. John says: "These investments further demonstrate our commitment to invest US$20bn in US manufacturing over the next 10 years." He adds that the investments are a "testament to our confidence in the future of US manufacturing and our unwavering commitment to innovation, quality and economic growth".