Caterpillar continues to reduce costs through staff cuts

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Thousands of workers are set to lose their jobs as Caterpillar continues with plans to consolidate its operations in a bid to save billions…

It has been a bad few months for plant equipment firm Caterpillar. The company, which is in the process of cutting costs, has reportedly notified thousands of staff members across four facilities it is slashing jobs.

The plant equipment sector appears to be having some mixed results, with numerous plant hire firms reporting increased profits and growth, while others are experiencing difficulties. JCB, another major player in the sector, has already announced plans to cut staffing numbers in a bid to reduce costs. Hundreds of back office workers were told they would face redundancy earlier this month.

For plant manufacturer Caterpillar the situation has been just as difficult. Last week it was announced 100 jobs at its Northern Ireland facility were set to be lost.

The picture across the rest of the firm has been just as difficult. In Illinois, at its Global Information Services division 1,000 staff members were made redundant. Around 2,100 employees also took early retirement packages.

In North Carolina, 80 workers are set to be laid off from 1 January at the company’s Precision Seals Plant, Franklin. This was reported by newspaper Raleigh News & Observer.

Meanwhile, in Oak Creek, Wisconsin—the company’s global mining headquarters—250 employees will move to another facility in South Milwaukee as the site closes.

The cuts are not surprising, as the firm announced in September it would cut as many as 10,000 workers by 2018 as part of austerity plans. Caterpillar is seeking to reduce costs by $1.5bn as demand for equipment continues to fall. As a result, it is expected up to 20 facilities worldwide will close or be consolidated over the next few years.

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