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Cat Will Restructure; Reduce Workforce

NOTD Cat 200Sept. 29, 2015 – It is going to be tough medicine for Big Yellow. Caterpillar has announced significant restructuring and cost reduction actions that are expected to lower operating costs by about $1.5 billion annually once fully implemented, according to the company. These steps will begin in late 2015 and reflect recent, current and expected market conditions. For 2015, the company’s sales and revenues outlook has weakened and are expected to be about $48 billion, or $1 billion lower than the previous outlook of about $49 billion. For 2016, sales and revenues are expected to be about 5 percent below 2015.

Cat plans to reduce its salaried and management workforce by 4,000-5,000 people between now and the end of 2016, with most occurring in 2015, and with a total possible workforce reduction of more than 10,000 people, including the contemplated consolidation and closures of manufacturing facilities occurring through 2018. The company will offer a voluntary retirement enhancement program for qualifying employees, which will be completed by the end of 2015.