Job cut stories show no signs of letting up despite the aggressive moves by the federal government to prop the economy up. Heavy equipment manufacturer Caterpillar announced more layoffs – 2454 workers at five plans in 3 states.
Caterpillar is reliant on mining and construction and with both industries also struggling in the global financial crisis Caterpillar has struggled with sales recently. It is also having problems maintaining the upkeep of its many plants established when the company was still able to expand due to building boom of recent years.
However, due to the crunch, Caterpillar announced that it will be cutting 20,000 positions aside from slashing executive compensation and offer buyouts to 25,000 more employees. With a worldwide scope, Caterpillar also freezed its hiring in all its branches to keep the company afloat.
Caterpillar is among the companies expecting bailout money from the government’s stimulus plan. In a visit to a Caterpillar factory last February, President Obama announced that the company has promised to rehire some workers once it gets fresh funds from the federal government.
Source: MSNBC
