Caterpillar, the world’s biggest manufacturer of construction and demolition equipment, has announced that it is to slash its global workforce by a staggering 20,000 people.
The announcement coincides with the company’s announcement that it had achieved record sales and revenues of $51.324 billion for 2008, up 14 percent from 2007. Profit per share was $5.66, up 5 percent and profit after tax of $3.557 billion was about flat with 2007. The company also reported record fourth-quarter sales and revenues of $12.923 billion, 6 percent higher than the fourth quarter of 2007. Profit per share for the quarter was $1.08, down 28 percent from the fourth quarter of 2007.
However, underlying the good news was a very clear statement on the future of the company’s business and the sectors it serves.
“We have initiated actions which will remove about 20,000 workers from our business and every indirect spend dollar will be heavily scrutinised,” says Caterpillar CEO Jim Owens.
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