Caterpillar moves to cut 20,000 jobs
The U.S. heavy equipment maker, Caterpillar, said Monday in a statement that it planned to cut 20,000 jobs from its work force as the economy continues to slow.
The company said that it also planned to closely examine all of its costs and spending.
"We have initiated actions which will remove about 20,000 workers from our business and every indirect spent dollar will be heavily scrutinized," Caterpillar said in a statement.
"These are very uncertain times, and it's imperative that we focus Team Caterpillar on dramatically reducing production schedules and costs in light of poor economic conditions throughout the world," the chief executive, James Owens, said in a statement.
"We expect to have most of the actions needed to lower employment and cost levels in place by the end of the first quarter," Owens said.
The announcement of the job cuts came as Caterpillar reported fourth-quarter revenue of $12.9 billion, 6 percent higher than the fourth quarter of 2007. Earnings in the quarter dropped 32 percent, $1.08 a share or $661 million from $1.50 and $975 million.
Analysts had expected $1.31 a share on revenue of $12.84 billion.
It also reported sales and revenue of $51.3 billion for the year, a 14 percent increase from 2007.
Caterpillar also lowered its sales and profit for 2009.
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