Cat offering early retirement to 2,000 workers to cut its budget

Peoria, Ill.-based Caterpillar Inc. said it is offering a voluntary early-retirement package to 2,000 U.S. production workers in another move aimed at cutting its workforce, according to a report from

The equipment manufacturer said the incentive package is in addition to earlier plans to cut 22,000 jobs, according to the report.

The employees who will be offered the voluntary separation work at facilities in Aurora, Joliet, Decatur, Pontiac and the Peoria area in Illinois, as well as in Denver, Memphis and York, Pa.

Depending on business conditions, Caterpillar said Wednesday, “more voluntary and involuntary workforce reductions may be required as the year unfolds,” according to the report.

These early retirement offers come after Cat’s decision last month to lay off 20,000 workers.