Caterpillar Moves to Cut 20,000 Jobs

[Pale Blue Dot]

Source: New York Times

The heavy equipment maker, Caterpillar, said Monday morning in a statement that it planned to cut 20,000 jobs as part of an aggressive effort to lower cost as the economy continues to slow.

The company said that it also planned to closely examine all of its costs and spending.

“We have initiated actions which will remove about 20,000 workers from our business and every indirect spend dollar will be heavily scrutinized,” Caterpillar said in a statement.

“These are very uncertain times, and it’s imperative that we focus Team Caterpillar on dramatically reducing production schedules and costs in light of poor economic conditions throughout the world,” the chief executive, James W. Owens, said in a statement.

“We expect to have most of the actions needed to lower employment and cost levels in place by the end of the first quarter,” Mr. Owens said.

The announcement of the job cuts came as Caterpillar reported fourth-quarter sales and revenue of $12.9 billion, 6 percent higher than the fourth quarter of 2007. Earnings in the quarter dropped 32 percent, $1.08 a share or $661 million from $1.50 and $975 million. Analyst had expected $1.31 a share on revenue of $12.84 billion.

Read more: http://www.nytimes.com/2009/01/27/business/27caterpillar.html?_r=1&partner=rss&emc=rss

[xchrom]

1. if we spent more of the stimulus on infrastructure

maybe these cuts wouldn't be so deep.

[theophilus]

2. I think that plenty is being spent on infrastructure. Enough to

encourage Cat and others.....however, I believe they are shedding jobs to bring in more profit for the stockholders and management. This is all a shell game and is the economic up and down that the rich depend on to get richer. Why do they resist government intervention and regulation? The corps make money in good times and they make more in bad times by shedding higher paid workers and then hiring back "newbies" at smaller pay. Boom and bust works just fine for the upper 5 %. They love it! There ought to be laws.....

[xchrom]

3. so far only 18% is going to infrastructure. nt

[OhioChick]

4. 18% isn't going to do shit. n/t

[OhioChick]

5. Caterpillar Opens New Plant In China

Caterpillar Opens New Plant In China

http://www.industryweek.com/ReadArticle.aspx?ArticleID=14138

[melm00se]

7. makes sense

to build multi-ton pieces of equipment close to where they will be used rather than putting them on a ship and send them 6000+ miles away.

[Azlady]

8. Well, well, well, so much for the idea about construction equipment

being built in the USA for the stim package for all of the road work etc etc...

[4_TN_TITANS]

9. Jezus... new plant in China????

Will somebody please slap some fines or tariffs on these job exporting behemoths NOW

[melm00se]

6. my buddies

son had an offer from Caterpillar withdrawn (with a 'severance' payment - something they probably didn't have to do) days after he graduated from college with an EE degree.