Caterpillar recently announced that it will shut down five plants and cut 670 jobs in response to weak demand for mining equipment around the globe.
Caterpillar will shut down four American plants — in Peoria, Illinois; Thomasville, Georgia; Santa Fe, New Mexico; and in Prentice, Wisconsin –along with one Chinese plant.
Officials at the company recognize that the layoffs are tough for employees but say that they are a necessary step for consolidating the company’s resources.
The news is not all bad; the company plans to add 160 jobs at the Pontiac, Illinois plant.
Caterpillar reported an $87 million loss in the fourth quarter. They have already cut over 5,000 from September 24 through December 31.