Caterpillar Inc. employees in Decatur, Ill. are on high alert after the company announced plans on Friday to slash an additional 300 employees at within the next 60 days at their facility.
According to the Decatur Herald & Review, the layoffs come in the wake of plans announced last month to permanently lay off 460 employees at the plant. The company announced the layoffs were part of an effort to deal with a slump in the mining business.
"Products built in Decatur are used in the mining industry, which has witnessed weaker market conditions when compared to last year," the company said in a statement, adding that most of the layoffs will affect production workers. "Ultimately, with the softening in this sector, we must take steps to bring production in line with demand."
The affected employees work in production and support/management roles, with Caterpillar saying the majority of impacted employees are from the production work force.
According to the report, a company spokeswoman Barbara Cox said the actions are necessary in an attempt to bring production in line with demand.
"Products built in Decatur are used in the mining industry, which has witnessed weaker market conditions when compared to last year," Cox said. "While some cost reduction measures such as temporary layoffs, shutdowns and shortened workweeks have already been implemented, further measures must be taken in the near-term."
Caterpillar expects a 50 percent decline in sales of traditional mining equipment and a 15 percent decline in sales of machines from its Bucyrus unit, according to the Chicago Tribune. Overall sales of mining equipment are expected to decline by 30 percent.
