The Bridgestone tire plant in Des Moines is offering severance packages to 130 employees. The move comes after the company announced layoffs last July — initially announced for 118 workers and later decreased to 89. Those were the first layoffs at the plant since 1990.
The plant currently employs over 700 people. Bridgestone intends to reduce that number to 600. Local Steelworkers Union President Keenan Bell said that 102 workers have signed the interest list to take the severance package of $35,000. If the company doesn’t reach 130 people voluntarily resigning, they will begin to look at other options, like furloughs and layoffs.
Those interested in taking the buyout are already on the verge of retirement or are interested in using the money to go back to school, Bell said.
If Deere can’t sell their tractors, then Bridgestone can’t sell Deere the tires for those tractors.
The severance deals are indicative of an agricultural slowdown occurring over the whole state. John Deere laid off around 1,800 workers over the past year, attributing the cuts to reduced demand for their equipment. If Deere can’t sell their tractors, then Bridgestone can’t sell Deere the tires for those tractors.
Deere announced that the jobs lost are not due to production moves to Mexico, and are instead due to their sales declining by 20% over the past year. President-elect Donald Trump said he will impose a 200% tariff on John Deere’s imports if they move their manufacturing to Mexico.
According to the U.S. Department of Agriculture, inflation-adjusted net farm income dropped by 6.3% from 2023 to 2024. Deere states that its net income was down 42% during the third quarter of 2024 when compared to the same quarter in 2023.
