Caterpillar Cuts 2,500 Workers, Recalls Others - Companies * US * News * Story

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

A Healthier & Wealthier You
Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?
The Many Myths of Coca-Cola
Can you tell which statements are true, and which ones are just rumors?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

Caterpillar Cuts 2,500 Workers, Recalls Others

Published: Monday, 26 Oct 2009 | 11:06 AM ET

Text Size

By: Reuters

Caterpillar the world's biggest maker of heavy machinery, said Monday it plans to permanently cut 2,500 workers even as increasing demand will allow it to recall some employees who were laid off during the economic downturn.

Caterpillar
Douglas C. Pizac / AP
Caterpillar said it will recall an estimated 500 laid-off workers by the end of next year.

Caterpillar [CAT Loading... () ] has already brought back some workers, and estimates that due to signs of recovery in the global economy, about 550 of those laid-off will return by the end of 2010. The company has forecast sales next year would rise between 10 percent and 25 percent.

However, about 2,500 laid-off workers will now be offered separation packages. The company did not say which facilities were affected. On Monday, Peoria, Illinois-based Caterpillar began notifying approximately 2,500 U.S. employees they would be losing their jobs.

"It's important to remember that we are not close to the record-breaking demand we experienced from 2004 to 2008," Chief Executive Jim Owens said in a statement.