I missed this on Friday. Caterpillar plans to lay off 2,110 people in addition to the 20,000 announced a week ago:
PITTSBURGH (AP) — Heavy equipment maker Caterpillar Inc. announced 2,110 new job cuts Friday as it scales back production amid a world economic slowdown.
The world’s largest maker of mining and construction machinery said the layoffs at three Illinois plants — in Aurora, Decatur and East Peoria — and other cost-cutting measures were needed to maintain competitiveness. Like other big manufacturers, Caterpillar has seen demand for its large equipment fall as customers cut back spending.
The new layoffs came on top of 20,000 job cuts announced earlier this week, when the Peoria, Ill.-based company reported a 32 percent drop in fourth-quarter profit. Results fell as slumping commodity prices, tight credit markets and a decline in construction hurt orders for Caterpillar’s backhoes, tractors and other machines.
I continue to believe that if enough companies lay people off in anticipation of future losses it will become a self-fulfilling prophecy. Not to mention inviting government intervention.
