Summary
Caterpillar Inc. (CAT) announced on December 21, 2001, a plan to reduce its global workforce by over 900 employees as part of an initiative to enhance global efficiencies and reduce costs. This reduction includes the closure of its Perkins Engines manufacturing facility in Shrewsbury, U.K., which will impact approximately 520 employees, and employment cuts of around 420 in the United States, primarily through a voluntary early retirement program. These actions are expected to be completed by June 30, 2002. The company anticipates a pre-tax charge of approximately $55 million related to these restructuring efforts. Despite this charge, Caterpillar affirmed its comfortable stance regarding its 2001 financial outlook as previously communicated with its third-quarter results. Management expressed confidence that these measures will position the company for long-term growth and improve its ability to serve customers while delivering shareholder value.
Key Highlights
- 1Caterpillar Inc. plans to reduce global employment by over 900 positions.
- 2The company will close its Perkins Engines manufacturing facility in Shrewsbury, U.K., affecting about 520 employees.
- 3Employment reductions of approximately 420 people are planned in the U.S., primarily via voluntary early retirement.
- 4These workforce adjustments are aimed at improving global efficiencies and reducing costs.
- 5A pre-tax charge of approximately $55 million is expected due to these actions.
- 6Caterpillar remains comfortable with its 2001 financial outlook despite the restructuring charge.