MARKETS

Cat cuts continue

ABOUT 125 Caterpillar team members in Indiana will soon be out of a job, as the producer announced an indefinite layoff that will commence at the end of this month.

Donna Schmidt
Cat cuts continue

In its confirmation, the equipment producer said the layoff in Lafayette, which was effective August 26, was part of further actions to bring its production in line with demand.

“Compared to last year, we have witnessed weaker demand for products built at our Lafayette facility,” officials said.

“While some cost reduction measures such as temporary layoffs, vacation shutdowns and reduction in flexible workforce have already been implemented, further measures must be taken in the near-term.”

The company is fresh off its second quarter earnings report in late July that confirmed a 43% slump in profit year-on-year. It warned at the same time that additional cost-cutting measures were possible.

Cat’s Lafayette facility has about 1800 workers.

“We know this is difficult for our employees and their families, and the company will do what it can to ensure impacted employees have outplacement support during this time,” officials said.

In all, the original equipment maker has cut more than 10,000 of its payroll since last year’s second quarter. It reported it had 122,402 direct employees at the end of June.

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