Caterpillar (CAT), a Dow stock, has been hit hard by the global recession. In Jan, as profits plunged, they announced 20K positions would be eliminated & management would have to take pay cuts. Today they announced another 2400 would be laid off.
The President visited Caterpillar in Feb & said that CAT CEO had promised to rehire some workers if the stimulus bill was passed. But CAT said later that more cuts were likely before the company could start hiring again. The stimulus plan was unlikely to have an effect until late 2009 or early 2010. Today the White House tried to put a good spin on it by saying that when gov money is spent, it will allow CAT to rehire workers. The problem is, don't hold your breath for the money to be spent. Given all the cutbacks at CAT, stockholders will be the next to share in the suffering.
Caterpillar to lay off 2,454 workers in 3 statesAP
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