Caterpillar Closing 5 Plants, Cutting 670 Jobs

Next steps in the cost-cutting campaign announced last year consolidates manufacturing and will redistribute some jobs

Associated Press via USA Today

Caterpillar says it plans to close five plants, causing a net reduction of about 670 U.S. jobs as part of a broader cost-cutting campaign announced last year.

Cuts include:

  • About 230 office and production jobs in East Peoria, IL, where manufacturing is being consolidated, with some transferred to outside contractors
  • Another 120 East Peoria employees will be laid off indefinitely
  • 250 jobs with factory closings in Thomasville, GA, and Santa Fe, NM (consolidating operations expected to add 160 jobs at the Pontiac, IL, plant)
  • 220 jobs with closing of a forest-products facility in Prentice, WI
  • Other moves will affect plants in Indiana, Mississippi, Texas and China

Caterpillar, which currently employs about 106,000 workers globally, reported an $87 million loss in 2015's fourth quarter on sales of about $11 billion.

(more on Caterpillar downsizing plans . . .