CEDAR RAPIDS, Iowa (KCRG) - John Deere is expected to announce more layoffs next week. That’s according to an email the Waterloo Courier reports employees received Monday.

This comes after the company announced thousands of layoffs company-wide in the last three months to move production to a new facility in Mexico.

Doctor Peter Orazem said the layoffs have to do with the cost of producing the tractor versus the demand for the product. He said during the pandemic the US agriculture economy was thriving. Farmers were then buying new equipment while the price of crops was being purchased at a high price. But he said that’s predicted to start turning around. The price to build a tractor is high but the sale price has gone down.

Moving some of the production to a plant in Mexico while laying off employees will make it cheaper to produce some of the products.

“Farm income is projected to fall 24% this year, so farmers are not expected to be purchasing new equipment in the way they were in 2021 and 2022,” said Orazem.

Deere is reporting a 12% decrease in revenue.