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THURSDAY, NOVEMBER 26, 2009
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Caterpillar to Slash 20K Jobs

Don't they know Obama wants to heap money on infrastructure?

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(Newser) – Caterpillar Inc will cut 20,000 jobs—or 18% of its workforce—after posting a 32% drop in fourth-quarter income, the Wall Street Journal reports. “We were whipsawed in the fourth quarter,” said CEO Jim Owens. “Key industries were hit by a rapidly deteriorating global economy.” The manufacturer of heavy machinery is often seen as an indicator for various parts of the economy, particularly construction.

Over the past five years, Caterpillar’s workforce has ballooned nearly 50% as demand overseas drove growth. The company still posted a profitable fourth quarter and, Owens boasted, 2008 was the company’s sixth-consecutive year of record sales and revenue. But it expects first-quarter profits to be “under severe pressure.” The company has long been averse to job cuts, and last month announced up to a 50% cut in executive pay.

Caterpillar equipment is seen at the Altorfer Caterpillar dealership and service center in Springfield, Ill., Tuesday, Oct 21, 2008.
Caterpillar equipment is seen at the Altorfer Caterpillar dealership and service center in Springfield, Ill., Tuesday, Oct 21, 2008.   (AP Photo/Seth Perlman)
In this July 22, 2008 file photo, Caterpillar equipment is seen at the Altorfer Caterpillar dealership and service center in Springfield, Ill.
In this July 22, 2008 file photo, Caterpillar equipment is seen at the Altorfer Caterpillar dealership and service center in Springfield, Ill.   (AP Photo/Seth Perlman, file)
In this Oct. 21 2008 file photo, Caterpillar equipment is seen at the Altorfer Caterpillar dealership and service center in Springfield, Ill.
In this Oct. 21 2008 file photo, Caterpillar equipment is seen at the Altorfer Caterpillar dealership and service center in Springfield, Ill.   (AP Photo/Seth Perlman)
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riffran
Jan 26, 09 10:03 AM CST
The funny thing is......They just announced a few weeks ago that they are putting a plant in Seguin Texas.....this story doesn't add up Reply
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PaleRider
Jan 26, 09 3:17 PM CST
Obama Where are you>? Reply
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