Machinery giant Caterpillar Incorporated on Tuesday announced a new round of job cuts, as they lay off more than 2,400 employees at five plants in Illinois, Indiana and Georgia. Caterpillar, which is the world's largest maker of mining and construction equipment, has seen its sales dwindle amidst a devastating global economic crisis. The company had expanded dramatically in recent years, helped by a building boom in developing countries. In response to the worsening conditions, Caterpillar in January announced job cuts that will ultimately eliminate 20,000 positions. It also said it would slash executive compensation by up to 50 percent and offer buyouts to about 25,000 U.S.-based employees. Caterpillar, which employs about 112,000 people worldwide, said it had imposed a global hiring freeze. In the latest cuts, the Peoria, Illinois based company said 2,365 support and management workers had been laid off for at least six months and 89 workers had been let go permanently. Some 245 of the 2,365 layoffs had been announced previously. Among the affected workers are 1,726 people at plants in East Peoria and Aurora, Illinois, 439 at a plant in Lafayette, Indiana, and 289 in Jefferson and Griffin, Georgia. Shares of Caterpillar slid 32 cents, or 1.2 percent, to $26.10 in Tuesday late morning trading.
