No Butterfly Zone

Caterpillar lays off workers, maintains dividend

A long, bleak march of downsizing began last fall for Caterpillar, Inc., and this month it swept through the midsize city of Peoria, Illinois. An undisclosed number of Caterpillar employees at the company’s Peoria plant received layoff notices the second week of December as part of a workforce reduction and restructuring that was announced last September.

In total, at least 10,000 Caterpillar workers are expected to lose their jobs over the next few years.

Caterpillar forklifts on the lot.—Shutterstock photo

Caterpillar forklifts on the lot.—Shutterstock photo

The Peoria layoffs, among others, paved the way for the consolidation of what used to be two separate divisions: the Advanced Component & System Division and the Product Development & Global Technology Division. The company has said it will provide severance packages and outplacement services, while an official statement additionally promised that Caterpillar will try to help fired employees find other positions.

The day of the layoffs, the company’s board of directors voted to maintain the quarterly cash dividend of seventy-seven cents per share of common stock. Keeping the dividend at its current level “has remained a high priority throughout this difficult economic cycle,” according to Caterpillar chairman and CEO Doug Oberhelman, who acknowledged that the board’s action was made possible by “tough actions necessary to reduce our cost structure.”

Advertisements

Trackbacks/Pingbacks

  1. ‘Pillars’ of a Rebuild | Electrical Apparatus Magazine - February 2, 2017

    […] Caterpillar’s saga continues with a headquarters relocation, the company announced Tuesday, as it plans to move its home base and current weight of burdens to the City of Big Shoulders. An exact site is yet undetermined. […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: