John Deere Rehires Workers, But Tariffs, Lawsuits, and Past Layoffs Still Loom

John Deere is bringing workers back. That’s always good news. It’s doing it carefully and not nearly at the scale of its recent layoffs, but the company confirmed it will recall nearly 50 employees this April across three U.S. facilities. These rehires support rising demand in construction, forestry, and drivetrain production. That’s also good news. This latest round follows earlier callbacks in 2026. In total, more than 300 U.S. employees have returned to work since January. 

Where the workers are returning

Deere is spreading these rehires across three key plants tied to construction and component production. These workers will support core factory roles. Think fabrication, assembly, and material handling. All three facilities play important roles in Deere’s construction and forestry lineup. Dubuque, Iowa, builds dozers, skid steers, and backhoes. Davenport, Iowa, produces loaders, ADTs, graders, and forestry machines. Coffeyville, Kansas, handles drivetrain components used across Deere equipment.

April 2026 callbacks include:

• 21 employees at Dubuque Works 
• 20 employees at Davenport Works
• 8 employees at Coffeyville Works 

Construction rebound is helping after deep cuts

These callbacks follow a rough stretch. A struggling farm sector and lower equipment demand triggered layoffs across multiple plants in 2024. The company eliminated more than 2,000 jobs that year. The cuts continued into 2025. Facilities in Waterloo, Moline, East Moline, and Ottumwa saw hundreds more layoffs. Tractor sales have been rough, folks. High interest rates, tariffs, and lower commodity prices have kept farmers from buying new equipment.

At the same time, Deere has been reshaping its manufacturing footprint. The company has committed to at least $20 billion in U.S. facilities investment over the next decade, with a shifting focus toward construction, reman, and turf. That $20B includes major projects like a 120,000-square-foot expansion of the company’s remanufacturing facility in Strafford, Missouri, and construction of a new excavator factory in Kernersville, North Carolina. Here's a quote from a recent financial report: 

“While the global large agriculture industry continues to experience challenges, we’re encouraged by the ongoing recovery in demand within both the construction and small agriculture segments,” said John May, chairman and CEO of John Deere. “These positive developments reinforce our belief that 2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.”

I'll also note here: According to its latest financial report, John Deere's worldwide net sales and revenues increased 13 percent, to $9,611 million, in its first quarter of 2026 (that ended February 1). Net sales were $8,001 million for the quarter, compared with $6,809 million in the same quarter of 2025.

Tariffs still cloud the outlook

Even as hiring ticks up, cost pressure remains. Tariffs continue to hit equipment manufacturers hard. Deere has projected hundreds of millions in tariff-related costs annually. Steel, aluminum, and imported components remain expensive. A recent Supreme Court ruling struck down some tariff tools under emergency powers. But most duties remain in place. Steel and aluminum tariffs continue. So do China-related duties and other trade measures.

Deere is also dealing with legal headaches

The company recently agreed to a $99 million settlement tied to right-to-repair claims. The case alleged Deere restricted access to diagnostic tools and repair software, forcing tractor owners to use John Deere dealers to diagnose and fix machines at a higher cost than repairing it themselves. As part of the settlement, Deere will deposit funds into a class settlement fund. The funds will be distributed to class members pursuant to a court-approved distribution plan and used to cover administrative and legal fees. According to this Farm Progress article: 

The settlement agreement also requires Deere to make tools available to “enable farmers and IRPs [independent repair shops] to diagnose and repair problems without having to use the services of an authorized dealer.”

This is big for fleets — although this case is focused on tractors. Access to diagnostics and repair tools affects uptime, service costs, and independence from dealer networks. And I should mention there's also another federal antitrust case with Deere still ongoing. The Federal Trade Commission sued Deere last year. From that same press release link: 

“Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” said Federal Trade Commission Chair Lina M. Khan. “The FTC’s action today seeks to ensure that farmers across America are free to repair their own equipment or use repair shops of their choice — lowering costs, preventing ruinous delays, and promoting fair competition for independent repair shops.”

What this means for equipment fleets

John Deere has brought back more than 300 workers in 2026. That’s meaningful. The company is also rethinking its repair approach and opening access to diagnostic tools. That’s progress. But the workforce remains well below pre-downturn levels. Tariffs still pressure costs, and legal challenges still remain. Let's just say recovery looks cautious — like everything else these days.