John Deere Dubuque (Iowa) Works will lay off 45 employees effective Oct. 22.
"We have depressed market conditions that require us to reduce the amount of manufacturing employees in Dubuque," said John May, general manager of John Deere Dubuque Works. "This will include production workers with the least seniority."
American housing starts fell to a 12-year low in August, according to a government report. Deere's equipment sales reflect that dip in home construction.
Dan White, president of United Auto Workers Local 94, expressed disappointment in the Deere announcement.
"We knew from the news reports that housing starts were down," White said. "The orders haven't been coming in."