(Reuters) - Caterpillar Inc on Monday announced cost cutting measures in response to economic uncertainty.
* Says will also suspend merit pay increases for management and support
employees and has instituted a hiring freeze
* Says for 2009, executive compensation will decrease up to 50 percent
* Says offering management and support employees based in the United States an
incentive-based voluntary separation program
* Says compensation for senior managers will be reduced 5 to 35 percent
* Says certain CATERPILLAR (CAT.NY)business units have made work force reductions
* Says eligible employees have until January 12, 2009 to elect to take part in
the program
* Says will continue to implement cost reduction measures such as temporary
factory shut downs and involuntary employee separations, on an as-needed
basis
* Cites continued deterioration of conditions in many of markets its customers
serve and on-going economic uncertainty
* Says certain of its units made work force reductions through combination of
temporary, permanent layoffs
