More Bad News For Caterpillar: Up To 10,000 Job Cuts Coming

Caterpillar plans to cut up to 10,000 jobs worldwide over the next three years, the company reported today, as it also announced reorganization of its mining division.

Check out coverage from the Wall Street Journal, ReutersUSA Today and CNBC. Here is the press release.

From the Wall Street Journal piece …

The Peoria, Ill.-based company said the job cuts would occur through a reduction in its salaried and management staff and, longer term, through contemplated plant consolidations and closures. Caterpillar is aiming to reduce annual costs by roughly $1.5 billion a year. …

The planned job cuts include reductions of between 4,000 and 5,000 salaried and management staff through 2016 but mostly this year. The potential plant consolidations and closings could affect more than 20 of its operations and slightly more than 10% of its factory floor space.

Caterpillar said that since 2013, it has closed or announced plans to close or consolidate more than 20 facilities, impacting 8 million square feet of manufacturing space. In addition, the company already has reduced its total workforce by more than 31,000 since mid-2012. …

Caterpillar also said it would revamp its mining business, as well as the company’s dealer and customer-facing divisions as part of the efforts to lower costs.

Details of the mining reorganization are contained in a company press release. From it …

As previously announced, Chris Curfman, vice president with responsibility for Caterpillar’s Mining Sales & Support Division is retiring, effective December 31, 2015. His division will be integrated into the existing Global Mining machine business divisions. Bringing product, operations, sales and marketing organizations together in both the surface and underground mining applications aligns well with our customers and will also enable a more effective cost structure in a challenging mining environment. The surface mining sales and support teams will join the Hauling & Extraction Division, which will be renamed the Surface Mining & Technology Division, led by Caterpillar Vice President Tom Bluth. The underground mining sales and support teams will join the Material Handling and Underground Division, led by Caterpillar Vice President Denise Johnson.   

So, what does it all mean for South Milwaukee? It remains to be seen.

I’ll keep you posted, especially if I hear more about potential impacts to our city.

 

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Filed under Caterpillar, Local Business, South Milwaukee

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