Caterpillar plans to cut more than 900 jobs
Mar 1, 2002 12:00 PM
Caterpillar Inc plans to reduce employment at select locations by more than 900 people in order to improve global efficiencies. The company expects to reach its goals through the previously announced closing of its Perkins Engines manufacturing facility in Shrewsbury, United Kingdom, and employment reductions at selected business units in the United States.
The company will close the Shrewsbury facility and reallocate production to other Caterpillar engine facilities to better leverage technology and capacity. This closing will affect about 520 workers. In the United States, the firm plans to achieve reductions of about 420 employees primarily through a voluntary early retirement program offered by selected business units. If employment reduction goals are not met through voluntary early retirements, Caterpillar will use involuntary separations. These actions are to be completed by June 30, 2002.
Caterpillar also plans to take a pre-tax charge of about $55 million.
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