Rolling layoffs expected to continue at Cat

By WEEK Reporter

March 14, 2013 Updated Mar 14, 2013 at 9:53 PM CDT

PEORIA, Ill. -- Rolling layoffs that have hit Caterpillar employees in recent months are expected to continue.

The layoffs are a response to decreased demand that Cat believes is temporary. 

Officials did not say how many people were going to be effected by the layoffs, but did stress in a statement that the layoffs are temporary.

"We continue to take actions to bring our production in line with demand. This includes some short term temporary layoffs and other actions," Chief Corporate Spokesperson Jim Dugan said in a statement.  "We know this is difficult for our employees, but we are taking steps to position the company for long term success."

UAW officials said they are not surprised by the decision.

 

Cat indicated in January that they expect to see demand increase after the first quarter of 2013.

"We were hoping that things would rebound a bit better. A couple of week's ago Komatsu announced that they were going to be laying off, so were in a lot of the same businesses they are. So they didn't pick up and things just haven't been picking up as well as they thought they would," said UAW Executive Vice President Randy Smith.

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