LAFAYETTE, IN - To bring production levels in line with current demand, Caterpillar Inc. (NYSE: CAT) today notified 439 employees at its Lafayette, Indiana, Large Engine Center of layoffs expected to last at least six months. This decision impacts 405 production employees and 34 management and support employees based in Lafayette.
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This decision is in response to lower demand for products made at Lafayette. The Caterpillar manufacturing plant in Lafayette is the company's main source for medium-speed diesel engines for marine, petroleum, electric power, locomotive and industrial applications. Depending on business conditions, more layoffs and separations may be required as the year unfolds. Caterpillar is making these decisions in order to best position the company for long-term success and competitiveness in the global market.
The employees impacted by this decision were notified today by Caterpillar that the layoffs would begin on May 29, 2009.
In addition to reducing its global employment, Caterpillar has previously announced other actions in response to current conditions. These include:
- Significant reductions in total compensation for executives/senior managers.
- Hiring freezes and suspension of salary increases for most support and management employees.
- Significant reduction in capital expenditures.
- Sharp declines in overtime work.
- Several facilities have shortened workweeks. Others will or have implemented full and partial plant shutdowns.