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Caterpillar layoffs: what today’s earnings report tells us

Caterpillar Inc. reported this morning that it expects to have its workforce reduction — you know, firings and such — complete by the end of the first quarter of 2009. The total adds up to 20,000, but 8,000 of those are contract/agency employees who, as far as we know, have mostly been let go already.

Adding in 2,500 voluntary separations (buyouts, etc.) cuts the 20k figure in half, but the report clearly states that says 4,000 full-time production employees will have been let go by the end of March, as will 5,000 support and management employees. And any more the economy dictates.

Further good news: Overtime is being slashed and hours are being cut, so even those who keep their jobs may end up pinching pennies this year.

Sadly, the report does not say where the cuts will happen. I’ve heard of layoffs in Aurora, Illinois, and Lafayette, Indiana, in the past couple days.

If you’re hearing about any where you work, let us know in the comments.

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Tom Mangan posted at 6:31 am January 26th, 2009 |

5 Responses to 'Caterpillar layoffs: what today’s earnings report tells us'

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  1. The Glittering Eye » Blog Archive » Caterpillar Layoffs says:

    […] Tom Mangan, who blogs primarily about Caterpillar, had this to say today: Further good news: Overtime is being slashed and hours are being cut, so even those who keep their jobs may end up pinching pennies this year. […]

    Permalink | Posted January 26th, 2009, at 7:05 am
  2. B says:

    You’re right – it will be interesting to see where these jobs are located. I think many in Peoria stopped breathing this morning. People I know not even directly associated w/the company are tense.

    Permalink | Posted January 26th, 2009, at 7:07 am
  3. Deron_05 says:

    Last week in our section meetings we were told that our plant would have a shutdown the week of March the 23rd. And that all shifts, all sections/departments would be shutdown for that week. But that was before today’s announcement from corporate.

    The small mining truck (40/50 ton – 60/70 ton) orders have been on life support since November of 2008. The large truck (100 tons and up) orders had been doing fairly well despite the downturn in the world’s economy. We even had fifty new orders come in the past couple of weeks for the 100 ton trucks. Then late last week I saw a memo listing some 231 orders for various models of large trucks that were cancelled.

    With today’s announcement one has to wonder if anyone will be left standing come April at our plant.

    Permalink | Posted January 26th, 2009, at 9:48 am
  4. reaper1 says:

    Griffin is next on the chopping block…..the exact # is yet to be determined.

    Permalink | Posted March 13th, 2009, at 10:29 am
  5. 1of584 says:

    Looks like more than just Griffin was on the chopping block. At E.P. the new layoffs they announced last night (early this morning to you non-3rd shifters) cut back to early ’05 hire dates… Basically collective bargaining employees hired under the latest contract recieved a WARN notification for a layoff between June 1 and June 15.

    Permalink | Posted March 17th, 2009, at 8:24 am

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