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Caterpillar announces additional 2,100 layoffs


    CHICAGO (Reuters) - Caterpillar Inc said it was laying off an additional 2,110 production workers, bringing layoffs announced this week to about 22,000, as the world's largest maker of construction and mining equipment scrambles to cope with a downturn in demand brought on by recession.

    Earlier this week the company said it was cutting nearly 20,000 jobs and warned of a tough year ahead, with worldwide economic weakness gutting orders for it earth-moving equipment.

    The employees affected by the latest cuts work in three plants in Illinois -- in Aurora, Decatur and East Peoria -- that make wheel loaders, hydraulic excavators, off-highway trucks, track-type tractors and pipelayers.

    In addition to the 2,100 production cuts announced on Friday, CATERPILLAR (CAT.NY)said 416 support and management employees in Aurora, Decatur and East Peoria were being laid off. The company said those cuts were included in the tally released Monday.

    "Over the last few months, recessionary conditions have had a very negative impact on our customers and we must drastically reduce our production levels and cost structure in order to remain competitive for the long run," Bob Williams, Caterpillar's vice president for the Americas Operations Division, said in a statement.

    The company said the layoffs would begin on April 13.

    (Reporting by James B. Kelleher; editing by John Wallace)