Caterpillar Cuts 2,500 Jobs

However 500 furloughed employees will be returning to work

Caterpillar said on Oct. 26 it was cutting about 2,500 jobs and had started to bring more than 500 laid-off employees back to work, in a sign of improving economic conditions.

About 550 furloughed U.S. employees have returned or will return to work before the end of 2010, including support, management and production employees, the company said.

"We are pleased that signs of recovery in the global economy allow us to return a selected group of laid-off employees to work," said Caterpillar CEO Jim Owens. "But it's important to remember that we are not close to the record-breaking demand we experienced from 2004 through 2008."

Also on Oct. 26, Caterpillar began notifying about 2,500 laid-off U.S. employees that they would not be returning to work, without giving details. "The company is offering a separation package for those employees. A breakdown of impacted employees by location will not be provided."

Since late 2008, Caterpillar slashed 18,700 jobs as the company faced problems amid the financial crisis which slammed the brakes on growth.

The company recently reported third-quarter earnings of $404 million down 53% from a year earlier, as revenue fell 44%.

Copyright Agence France-Presse, 2009

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