A day after another dismal earnings report, Caterpillar has announced the cutting of about 670 jobs from its workforce as part of the company’s extensive restructuring programme.
Caterpillar announced this week that its sales were down 15% in 2015, in the third consecutive year that sales have fallen from.
Among the cuts are 350 at Caterpillar’s East Peoria campus, while five plants are also set to close.
The Peoria, Illinois-based company now expects a 10% lower 2016 revenue of about $42bn, which is also more than a third below the company’s peak of $65.9bn four years ago.
The decline would leave revenue below what it was before Caterpillar’s acquisition of large mining equipment manufacturer Bucyrus for $8bn in 2011.
“The company will relocate affected production to other Caterpillar facilities with a portion of the work going to outside suppliers,” noted Caterpillar, blaming “low demand for mining products”.
The mining downturn has plagued Caterpillar on and off ever since its major investment in Bucyrus.
In 2015, Caterpillar revealed plans to cut 10,000 jobs worldwide by 2018 and close up to 20 factories.
