PEORIA, Ill., Jan. 30 /PRNewswire-FirstCall/ -- To bring production levels
in line with current demand, Caterpillar Inc. (NYSE: CAT) today notified full-
time production employees at its Aurora, Decatur and East Peoria, Illinois,
manufacturing facilities of permanent layoffs. A total of 2,110 production
employees will be laid off at the three facilities as a result of this
decision. The layoffs for production employees announced today are in addition
to a wide range of other workforce and cost-reduction actions that were
outlined by Caterpillar on Monday, January 26, 2009.
In Aurora, where Caterpillar manufactures wheel loaders and hydraulic
excavators, 500 production employees will be laid off. In Decatur, where the
company manufactures off-highway trucks, motor graders and wheel tractor
scrapers, 1,026 production employees will be laid off. In East Peoria, where
Caterpillar manufactures track-type tractors and pipelayers, 584 production
employees will be laid off.
In addition to the production employees, a total of 416 support and
management employees in Aurora, Decatur and East Peoria have also been
notified of layoffs today. This includes 96 support and management staff in
Aurora, 146 in Decatur and 174 in East Peoria. These 416 support and
management staff make up a portion of the as many as 5,000 layoffs and
separations announced by Caterpillar on January 26, 2009. Other Caterpillar
business units are currently determining the level of layoffs and separations
needed to reach the previously announced plan to reduce the company's support
and management workforce.
These actions are in response to lower demand for products made at the
Illinois facilities. As previously announced, Caterpillar is rapidly
executing strategic "trough" plans and implementing actions throughout the
company to deal with a very challenging global business environment.
Depending on business conditions, more layoffs and separations may be required
as the year unfolds.
"It is never easy to take steps that impact the lives of our employees and
their families," said Bob Williams, Caterpillar vice president for the
Americas Operations Division that includes the facilities in Aurora, Decatur
and East Peoria. "But over the last few months, recessionary conditions have
had a very negative impact on our customers and we must drastically reduce our
production levels and cost structure in order to remain competitive for the
Employees impacted by this decision were notified today by Caterpillar
that the layoffs would begin on April 13, 2009. In addition, various
government agencies and other officials were notified of this decision under
the United States Department of Labor's Worker Adjustment and Retraining
Notification Act (WARN) and the Illinois Worker Adjustment and Retraining
Notification Act ("IL WARN").
In addition to reducing its global employment, Caterpillar has previously
announced other actions in response to current conditions. These include:
-- Hiring freezes and suspension of salary increases for most support and
-- Significant reductions in total compensation for executives/senior
-- Significant reduction in capital expenditures.
-- Sharp declines in overtime work.
-- Several facilities have shortened workweeks. Others will or have
implemented full and partial plant shutdowns.
For more than 80 years, Caterpillar Inc. has been making progress possible
and driving positive and sustainable change on every continent. With 2008
sales and revenues of $51.324 billion, Caterpillar is the world's leading
manufacturer of construction and mining equipment, diesel and natural gas
engines and industrial gas turbines. The company also is a leading services
provider through Caterpillar Financial Services, Caterpillar Remanufacturing
Services, Caterpillar Logistics Services and Progress Rail Services. More
information is available at http://www.cat.com.
Certain statements in this release relate to future events and
expectations and as such constitute forward-looking statements involving known
and unknown factors that may cause actual results of Caterpillar Inc. to be
different from those expressed or implied in the forward-looking statements.
In this context, words such as "will," "would," "expect," "anticipate,"
"should" or other similar words and phrases often identify forward-looking
statements made on behalf of Caterpillar. It is important to note that actual
results of the company may differ materially from those described or implied
in such forward-looking statements based on a number of factors and
uncertainties, including, but not limited to, (i) adverse change in general
economic conditions; (ii) adverse change in the industries Caterpillar serves
including construction, infrastructure, mining, energy, marine and electric
power generation; (iii) Caterpillar's ability to manage material, including
steel, and freight costs; (iv) Caterpillar's ability to generate cash from
operations, secure external funding for its operations and manage its
liquidity needs; (v) material adverse change in customers' access to liquidity
and capital; (vi) currency exchange or interest rates changes; (vii) political
stability; (viii) market acceptance of the company's products and services;
(ix) significant changes in the competitive environment; (x) epidemic
diseases; (xi) severe change in weather conditions negatively impacting
operations; (xii) changes in law, regulations and tax rates; and (xiii) other
general economic, business and financing conditions and factors described in
more detail in the company's Form 10-Q filed with the Securities and Exchange
Commission on October 31, 2008. This filing is available on our website at
http://www.cat.com/sec_filings. We do not undertake to update our forward-
Jim Dugan, Corporate Public Affairs of Caterpillar Inc.,