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Caterpillar to Cut 20,000 Jobs

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Caterpillar to Cut 20,000 Jobs

(AP/File)

Caterpillar, the heavy machinery company based in Peoria, Illinois, announced Monday it will cut 20,000 jobs.

The last few years have been boom years for Caterpillar, which makes construction and mining equipment as well as engines. The company has posted 6 consecutive years of record revenues, including 2008. But company CEO Jim Owens says Caterpillar was quote “whipsawed” in the fourth quarter last year—as the global economy tanked and dealers cancelled a significant number of orders.

Caterpillar expects sales and profit in 2009 to fall, as the recession continues. In response, the company is slashing workforce, limiting overtime and cutting salaries of executives and senior management.

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