Cat implements workforce actions to align production with demand

Caterpillar Inc announced plans to selectively align production levels with demand and resource requirements. The firm has already started bringing some laid-off employees back to work at various facilities, and based on current demand schedules, the company expects to return other employees to jobs as demand increases in the coming months. Approximately 550 laid-off US employees have returned or will return to work before the end of 2010, including support, management, and production employees.

Also, Caterpillar began notifying about 2,500 laid-off US employees that they will be separated from the company. The company is offering a separation package for those employees. A breakdown of impacted employees by location will not be provided.

“We are pleased that signs of recovery in the global economy allow us to return a selected group of laid-off employees to work,” said Jim Owens, Caterpillar chairman and chief executive officer. “But it's important to remember that we are not close to the record-breaking demand we experienced from 2004 through 2008.”

Looking forward, Caterpillar will adjust its workforce as production levels and resource requirements change. These actions may vary from business unit to business unit within the company.

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