Caterpillar to cut 20,000 jobs

[w¡n9Nµ7 §£@¥€r 123]

From the report:

We expect 2009 will be the weakest year for economic growth in the postwar period. We are expecting recessionary conditions to persist in most of the world throughout the year, with no growth in the world economy.

...

North American economies should decline 1.5 percent in 2009, but we expect the United States will be the first

major economy to pull out of recession, sometime in the second half of 2009.

...

The Obama administration’s stimulus program should increase funds for infrastructure construction.

Quick passage of the bill could increase funding in the second half of 2009, and some improvement

in infrastructure spending is expected.

[spookyturtle 9,466]

Don't all the Detroit haters hate Caterpillar too? I thought I'd hear chants of buy Komatsu.

[Reba 2]

We have a Caterpiller plant here in town. I'm hoping they leave it alone, because this town just cannot handle anymore unemployed.

[NickD 203]

With China holding the Olympics last summer, they said thousands of Chinese using hand shovels and wheel barrels made all those roads. So perhaps by laying off a mere 20,000 from Caterpillar will create millions of jobs for this new infrastructure program.

Ha, Amos, stay away from that wheel barrel, you don't know nuttin about machinery.

[GaryC 7]

I have more info on this if anyone is interested. The 20,000 layoffs is a little misleading. Two weeks ago Cat layed off 15,000 workers. A lot of them were "contract" employees like me. Since they already got rid of 15,000 people the 20,000 number really means another 5,000 more people will get the ax. From what I hear most of them will be white collar and more contract people.

The majority of Cat people layed off were subject to "rolling layoffs". In essence, they choose a group of workers and lay them off for 8 weeks. When they come back a different group of workers will get 8 weeks off.

As for us, ATS, we lost half of our workforce. The other contract companies here had similar losses. These are perm layoffs. It's gonna make it hard when things pick up again. It took us over a year to get to full strength when things were busy. I have a feeling 6 months from now we are going to be hopping to keep up. Qualified machine techs are hard to find.

[Hilarious Clinton 452]

I have more info on this if anyone is interested. The 20,000 layoffs is a little misleading. Two weeks ago Cat layed off 15,000 workers. A lot of them were "contract" employees like me. Since they already got rid of 15,000 people the 20,000 number really means another 5,000 more people will get the ax. From what I hear most of them will be white collar and more contract people.

The majority of Cat people layed off were subject to "rolling layoffs". In essence, they choose a group of workers and lay them off for 8 weeks. When they come back a different group of workers will get 8 weeks off.

As for us, ATS, we lost half of our workforce. The other contract companies here had similar losses. These are perm layoffs. It's gonna make it hard when things pick up again. It took us over a year to get to full strength when things were busy. I have a feeling 6 months from now we are going to be hopping to keep up. Qualified machine techs are hard to find.

Thanks Gary. This shows there is the media take and reality. I have NEVER seen an accurate reporting on a nuclear related story. Even when I saw the Denver post in my building the next day they had such little attention to detail they misnamed major processes and rooms.

[*JG* 2]

Once GaryC loses his job, you can't expect him to return and rip Obama a new A-hole with renewed sense of purpose because now it's personal.

http://www.visajourney.com/forums/index.ph...2&hl=peoria

Dammit.....I hate to think this effects Gary.

[w¡n9Nµ7 §£@¥€r 123]

Rich,

In defense of the media, here is the relevant text (verbatim) from the report issued by Caterpillar. This is from page 16. The report can be downloaded from http://www.cat.com/cda/files/1305833/7/4Q%...20-%20FINAL.pdf.

The "about 20,000" number appears to be the sum of the numbers in bullet points 1, 3, 4 and 5.

Again, this is not a media report. This is direct from Caterpillar.

2009 Profit Outlook

As a result of sharply declining sales, we expect 2009 profit to drop significantly from 2008, and we are taking actions to deliver our “trough” profit target of $2.50 per share, excluding redundancy costs, at $40 billion in 2009 sales and revenues. We have initiated actions which will remove about 20,000 workers from our business and every indirect spend dollar will be heavily scrutinized. These actions support lowering our production costs in line with a 25-percent decline in sales volume and reducing SG&A and R&D costs supporting our Machinery and Engines business collectively by about 15 percent. Actions include:

* Voluntary and involuntary separations and layoffs of about 4,000 full-time production employees. Depending on business conditions more layoffs may be required as the year unfolds.

* Sharp declines in overtime work. Factory overtime is a key element of volume flexibility and many facilities were working high levels of overtime through most of 2008.

* Several facilities have shortened workweeks, and thousands of employees have been, or will be, affected by temporary layoffs and full and partial plant shutdowns.

* Elimination of almost 8,000 temporary, contract and agency workers. While these workers are a key element of our “flexible workforce” they are not included among the 112,887 full-time employees at year end.

* Voluntary separations of about 2,500 support and management employees.

* Additional layoffs or separations of as many as 5,000 support and management employees.

* Hiring freezes and suspension of salary increases for most support and management employees.

* Significant reductions in total compensation for executives / senior managers.

* At $2.50 profit per share, our short-term incentive plan would not trigger payment.

* Reduction in indirect expenses of about 15 percent.

* Significant reduction in capital expenditures.

* Shifting more resources to work on short- and medium-term material cost reduction.

* Shifting more resources to work on inventory reduction projects

[Hilarious Clinton 452]

Got it.

[Teacher Mark 53]

Once GaryC loses his job, you can't expect him to return and rip Obama a new A-hole with renewed sense of purpose because now it's personal.

http://www.visajourney.com/forums/index.ph...2&hl=peoria

Dammit.....I hate to think this effects Gary.

Haven't read the whole thread I take it.

Rich,

In defense of the media, here is the relevant text (verbatim) from the report issued by Caterpillar. This is from page 16. The report can be downloaded from http://www.cat.com/cda/files/1305833/7/4Q%...20-%20FINAL.pdf.

The "about 20,000" number appears to be the sum of the numbers in bullet points 1, 3, 4 and 5.

Again, this is not a media report. This is direct from Caterpillar.

2009 Profit Outlook

As a result of sharply declining sales, we expect 2009 profit to drop significantly from 2008, and we are taking actions to deliver our “trough” profit target of $2.50 per share, excluding redundancy costs, at $40 billion in 2009 sales and revenues. We have initiated actions which will remove about 20,000 workers from our business and every indirect spend dollar will be heavily scrutinized. These actions support lowering our production costs in line with a 25-percent decline in sales volume and reducing SG&A and R&D costs supporting our Machinery and Engines business collectively by about 15 percent. Actions include:

* Voluntary and involuntary separations and layoffs of about 4,000 full-time production employees. Depending on business conditions more layoffs may be required as the year unfolds.

* Sharp declines in overtime work. Factory overtime is a key element of volume flexibility and many facilities were working high levels of overtime through most of 2008.

* Several facilities have shortened workweeks, and thousands of employees have been, or will be, affected by temporary layoffs and full and partial plant shutdowns.

* Elimination of almost 8,000 temporary, contract and agency workers. While these workers are a key element of our “flexible workforce” they are not included among the 112,887 full-time employees at year end.

* Voluntary separations of about 2,500 support and management employees.

* Additional layoffs or separations of as many as 5,000 support and management employees.

* Hiring freezes and suspension of salary increases for most support and management employees.

* Significant reductions in total compensation for executives / senior managers.

* At $2.50 profit per share, our short-term incentive plan would not trigger payment.

* Reduction in indirect expenses of about 15 percent.

* Significant reduction in capital expenditures.

* Shifting more resources to work on short- and medium-term material cost reduction.

* Shifting more resources to work on inventory reduction projects

Maybe the Librul Media had infiltrated Cat. They make a damn good diesel engine BTW.

[w¡n9Nµ7 §£@¥€r 123]

Maybe the Librul Media had infiltrated Cat. They make a damn good diesel engine BTW.

Komatsu is better.

(j/k, I have no idea. spookyturtle, that was for you dude!)

[Teacher Mark 53]

Maybe the Librul Media had infiltrated Cat. They make a damn good diesel engine BTW.

Komatsu is better.

(j/k, I have no idea. spookyturtle, that was for you dude!)

I'm referring to the semi type anyways. Cat isn't going to be making them anymore I guess. It's a shame because they make a quality product. I think it was because of all of the new emission regs that are going into effect in 2010.

[spookyturtle 9,466]

Maybe the Librul Media had infiltrated Cat. They make a damn good diesel engine BTW.

Komatsu is better.

(j/k, I have no idea. spookyturtle, that was for you dude!)

Komatsu is the Japanese equivalent to Caterpillar.