Caterpillar to cut another 2,110 production jobs

By The Associated Press

PEORIA, Ill. – Caterpillar Inc. on Friday announced 2,110 new job cuts as the heavy equipment maker scales back production to match falling demand.

The cuts at three Illinois plants – in Aurora, Decatur and East Peoria – come after the company announced other work force and cost-cutting actions earlier this week.

On Monday, Caterpillar reported a 32 percent drop in fourth-quarter profit as the global economic slowdown sapped demand for heavy equipment. At that time, the company said it would be forced to lower its 2009 profit expectations and make further job cuts that ultimately will wipe out 20,000 positions.

Caterpillar employed nearly 113,000 people worldwide and has expanded dramatically in recent years, helped by surging demand arising from infrastructure projects in developing countries, particularly in Asia.

At the end of 2008, Caterpillar employed 11,500 more people than it did a year earlier.

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