John Deere Supplier Gates Corp Closing Plant in Newton, lowa

John Deere’s layoffs are affecting other companies too. A manufacturing company in Newton is closing. This shutdown is likely linked to JohnDeere, which has laid off thousands of workers in several states recently.

Frank Liebl, the Executive Director of Newton Economic Development Corporation, said the closure wasn’t a surprise since Gates Corporation, the company shutting down, has been a John Deere supplier since 2017.

According to lowa Workforce Development’s WARN Notification List, Gates has informed 41 of its Newton employees that they will be laid off.

“When things happen, when you are just your client, your customer stops ordering, you probably don’t have a choice,” Liebl said.

He said for those that are left jobless, the city will work hard to find them new positions.

“We’ll do what we can to assist those that are employed, and will reach out to us and try to work with them the best way we can,” Liebl said.

He said every business has its ups and downs, and while it’s hard to predict what’s next for John Deere, he believes better days are coming.

“John Deere obviously depends on the farm economy,” he said. “If prices improve, and costs come down, I think things will bounce back.”

According to the posting, all the workers will be officially laid off in November.

John Deere and Gates Corporation have not yet replied to questions about the layoffs.

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