As revenue declined from global mining and construction activities, heavy machinery manufacturer Caterpillar Inc. plans to cut down costs and is about to do that with a new round of layoffs.
The Illinois-based company announced its workers this week that it would cut 475 jobs from the customer services support division. The brand’s decision comes after a previous number of 270 employees were laid off in Illinois.
Lisa Miller, the spokeswoman for REFILE-Caterpillar Inc., stated that “The restructuring is a result of a consolidation of several divisions combined with current business conditions.”
Caterpillar cut around 4,800 jobs over the past year and since 2012 reduced more than 10% of its global workforce, which sums up to 20.000 employees. Miller added that the most recent cuts regard especially the employees working at the facilities around central Illinois, which include Peoria and Morton, but also some global positions. She also said that the positions targeted were responsible for supporting after-market parts, service and handling customer and dealer support.
The layoffs could begin on various dates and might not become effective for a couple of months. The job cuts involve workers that are not union represented and who are office personnel.
The company registered in July a drop in the quarterly profit due to the anticipated decrease in construction revenue based on smaller residential building activity in China and Brazil. Moreover, what contributed to the company’s decision were the rather low sales of oil and gas construction in the U.S. and the auto sales in Europe with the U.S .dollar recessing them.