Caterpillar to scrap 2,500 jobs despite increasing orders
Published 27/10/2009 | 13:10
Us Heavy machinery giant Caterpillar has announced it is to cut 2,500 workers in the US, despite signs of increasing demand for its products.
The Illinois firm also said that while it will begin informing 2,500 workers of permanent redundancies, increasing orders are also allowing it to rehire some employees that were temporarily laid off during the economic downturn.
It is understood that neither decision will have an impact on the company’s Northern Ireland operation FG Wilson.
The Larne based generator maker has laid off hundreds of workers during the last 18 months, but recently began rehiring small numbers of temporary staff and restored contracted employees to a full working week as orders stabilised.
Caterpillar has reduced its workforce by around 34,000 worldwide since the recession began to take its toll on the construction and industrial sectors.
Last week the company reported a stronger-than-expected third quarter profit of $404m (£245m), and while this was down 54% on year, it was welcomed by analysts.
The company also forecast that sales next year would rise by 10-25%.