Caterpillar to lay off 125 workers at Indiana Large Engine Center
| August 08, 2013 |
Due to slumps in demand and earnings in the first half of this year, Caterpillar has confirmed to the Layfayette, Indiana Journal & Courier that it will lay off 125 workers at the Large Engine Center there.
The indefinite layoffs will take effect August 26. About 1,800 employees work at the plant.
In a statement to the paper, Cat spokesman Jim Dugan said the layoffs come after previous attempts to cut costs including “temporary layoffs, vacation shutdowns and a reduction in flexible workforce.”
“Compared to last year, we have witnessed weaker demand for products built at our Lafayette facility,” Dugan said. “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.”
Citing a slump in mining demand, Caterpillar announced in July that second quarter sales and revenue fell 16 percent between 2012 and 2013 while profits fell 43 percent.
In the past year, Caterpillar has cut its global full-time workforce by more than 10,000 to 122,402 employees, as of the end of June. It’s temporary workforce was reduced by 9,633 during the last quarter.