Caterpillar Lays Off 2,400 More Workers
March 17, 2009 by Stephen Kersey
Filed under Business
Caterpillar, the largest construction equipment company in the world, has unveiled a plan that will cut jobs in three states to help the company survive the worldwide financial mess. The total number of workers to be out of a job is reportedly between 2,400 and 2,500.
Caterpillar Logo - Source: Flickr
The reason Caterpillar is struggling is directly related to the poor economy. With less money floating around, construction has dried up throughout the globe.
In total, Caterpillar is expected to eliminate nearly 20,000 of their more than 110,000 employees. Pay cuts are also planned, with some executives losing up to 50% of their wages. Earlier in the year, Caterpillar announced that it would institute a hiring freeze.
The states affected by the latest layoffs are Indiana, Illinois and Georgia, with Illinois being the hardest hit state. Nearly 1,800 of the jobs being lost will be in the cities of Aurora and East Peoria.
By the end of trading on Tuesday, Caterpillar stock was at $26.83 after rising more than $.40.
Source: Wire Reports
Every day more bad news…I hope that all the government programms inyecting money into the economy with start as soon as possible, so Caterpillar would be one of the first beneficary form infrastructure investments. Lets see what happens…