Caterpillar to slash 20,000 jobs
The layoffs, equivalent to about 18 percent of its workforce, came even as the company chalked up its sixth consecutive year of record sales and revenues in 2008.
Some 4,000 production and 7,500 administrative staff as well as about 8,000 contract staff will be among those to be downsized, the company said as it reported 2008 fourth-quarter profit dropped 32 percent to 661 million dollars.
“Fourth-quarter profit was disappointing, particularly in light of record fourth-quarter sales and revenues and a significant favorable tax adjustment,” Caterpillar chief executive Jim Owens said in a statement.
The company’s fourth-quarter sales and revenues was six partcent higher from the same period in 2007 to 12.92 billion dollars.
Its whole year sales and revenues hit a record high of 51.32 billion dollars for 2008, up 14 percent from 2007.