06 May 2013 Last updated at 12:49:51 GMT

Caterpillar declares bout of layoffs in US and Canada

Caterpillar declares bout of layoffs in US and Canada

WASHINGTON (Scrap Monster) : The global heavy equipment manufacturer Caterpillar has announced further layoffs in its US and Canadian facilities resulting in massive job losses.

According to the company spokesperson, Caterpillar will lay off another 300 employees at its Illinois facility. This is in addition to the 460 job cuts announced last month. The company is said to have decided to go ahead with drastic cost cutting measures in its other plants across the US.

The company had announced late February that it is planning to cut around 1,400 jobs in its Belgium units, where the troubled European economy and the rising mining costs have crippled the mining and construction sectors.

The company has also announced closure of its tunnel-boring machine facility in Ontario by mid 2014 leading to around 330 job cuts. Caterpillar had acquired the plant from Lovat Inc. in 2008. The company sees limited prospects for business in near future.

According to Caterpillar officials, the road ahead doesn’t look that smooth. Industry wide, orders are down 25%. The order cancellations and order delays are more frequent than before. The company doesn’t foresee a big jump in business especially due to the weaker economic situations in European countries.

Caterpillar depends heavily on orders from mining companies. With mining industry passing through difficult times, the company is subject to more issues in the coming days. The construction slowdown has also affected the profits, which the company said has plummeted 45%.

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