Caterpillar is cutting up to 5,000 salaried and management jobs as it struggles with a sagging global economy. The restructuring amounts to an annual spending reduction of $1.5 billion dollars for the company. Cat expects a total possible workforce reduction of 10,000 positions, impacting more than 20 facilities across the globe between now and 2018. Joshua Lewer is a professor of economics at Bradley University. He says the company’s investment in commodities, energy and construction aren’t helping stabilize the bottom line:
“All three pillars of their company sales are not strong.”
Cat’s announcement follows hundreds of layoffs in Illinois since January. The company is also eliminating use of the largest building at its facility in Aurora. Cat has lowered its revenue forecast for this year by a billion dollars, placing it a $48 Billion. The company’s revenue forecast for next year is down another five percent.