On Thursday, Caterpillar announced plans for significant cost reductions and restructuring.
Because Peoria is our global headquarters and we have the largest concentration of employees in Illinois, the impact here will be significant. Peoria has been Caterpillar’s home for 90 years and we know this is especially difficult and hard for our local employees, families and communities.
These actions reflect economic uncertainty and weakness throughout the world. In 2012, our sales and revenues were about $66 billion. They have fallen every year since, and it’s very likely that 2016 will be our fourth consecutive year of lower sales and revenues.
That’s never happened in the 90-year history of our company.
While we’ve already made substantial adjustments as these market conditions have emerged we’re taking even more decisive actions now. We don’t make these decisions lightly, but additional steps are necessary to position Caterpillar to deliver solid future results.
We remain committed to Peoria and to Illinois. Our vision and plans for a new headquarters in downtown Peoria still stand although given current conditions we can’t say when the project will begin. As individuals and as a company, we will continue to contribute resources to support the health, welfare and sustainability of communities around the world and where we work and live.
I am very fortunate and proud to lead this company that I respect so much. I stand on the shoulders of those who came before me and bear responsibility to those who will follow. In our 90 year history, Caterpillar has had great success. We’ve also faced some rough roads; but we’ve come out better and stronger every time. And be assured, we’ll do it again this time.
Doug Oberhelman is the Chairman and CEO of Caterpillar Inc.