Caterpillar Sets 2,400 Layoffs in Three States

Caterpillar Inc. said Tuesday it will lay off more than 2,400 employees at five plants in three states as the heavy equipment maker continues to cut costs amid the economic downturn, the Associated Press reported.

The reductions will be at plants in Illinois, Indiana and Georgia. Caterpillar said in January that it will ultimately eliminate 20,000 positions worldwide.

In the latest cuts, Caterpillar said 2,365 support and management workers had been notified of layoffs expected to last at least six months, including 245 announced previously, and 89 workers will be let go permanently, AP reported.

Among the affected workers are 1,726 workers at plants in Illinois, which include 911 workers at a plant in East Peoria that makes track-type tractors and pipelayers, and 815 at a plant in Aurora, where the company produces hydraulic excavators and wheel loaders, AP reported.

Caterpillar said last June it will pull out of the North American Class 8 truck engine market by 2010, except for a severe-duty truck and engine in partnership with Navistar International Corp.