More job losses at Caterpillar

By Becca Wilkins03 February 2009

Caterpillar D7E dozer

Caterpillar D7E dozer

Caterpillar is axing production jobs at its Illinois-based Aurora, Decatur and East Peoria manufacturing facilities to "bring production levels in line with current demand."

The 2110 US job losses are in addition to the planned 20000 redundancies that were announced by the company last week.

A total of 500 jobs will go at the Aurora wheeled loader and hydraulic excavator manufacturing plant, with 1026 being cut at the off-highway truck, motor grader and wheeled tractor scraper manufacturing factory in Decatur. A further 584 redundancies will be made in East Peoria, where Caterpillar makes track-type tractors (dozers) and pipelayers.

In addition to the production employees, a total of 416 support and management workers at the three factories have also been notified of job cuts, Caterpillar said.

Other Caterpillar business units are currently determining the level of layoffs and separations needed to reach the previously announced plan to reduce the company's support and management workforce, the company said.

As previously announced Caterpillar is rapidly executing strategic "trough" plans and implementing actions throughout the company to deal with a "very challenging global business environment."

Bob Williams, Caterpillar vice president for the Americas Operations Division, said, "It is never easy to take steps that impact the lives of our employees and their families. But over the last few months, recessionary conditions have had a very negative impact on our customers and we must drastically reduce our production levels and cost structure in order to remain competitive for the long run."

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