There is no question that the recession took its tool on Caterpillar Inc. (NYSE: CAT). The company saw its stock plummet from mid 2008 through March of this year. Along the way the company was forced to layoff employees to help lower costs, but it announced today that it would be rehiring 550 of its laid off workers.Chief Executive Officer Jim Owens announced the news and stated that the company was pleased that "signs of recovery in the global economy" is allowing it to bring back some employees.
While the news of the rehires is good news for 550 of the company's laid off workers, the news was not so hot for others. Around 2,500 other laid off workers received news that they would not be getting rehired and that they should expect an offered separation package.
Caterpillar is the world's largest bulldozers and excavators manufacturer, so as the economy rebounds the company should find itself in good shape. The end of the recession is going to lead to a lot of new construction jobs, and Caterpillar demand will continue to rise.
The stock traded down 0.9% on the day to $57.07.
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Reader Comments (Page 1 of 1)
10-26-2009 @ 5:16PM
Iridium said...
This will be the news for the market for the next year or so. Job gains will be touted as substantial and a sure sign the economy is recovering. Yet corporations like Caterpillar which has shed thousands of jobs aren't actually adding workers.
When you say that you are going to rehire 550 workers while laying off another 2500, YOU AREN'T CREATING JOBS!!!
Even if the economy adds 5 million new jobs next year we will still be at a net loss in the millions. When you add the indisputable fact that 99% of new hires are at a lower pay scale than the job they last held, you find yourself in a negative reality being spun as a positive for political and manipulative gains.
Headlines like "Bank of America adding 500 jobs" will be at the top of every page next spring. All to hide the reality that the true economy will have fallen even further.
10-26-2009 @ 6:02PM
Lisa said...
No it reads that only 550 of the 3000 that were laid off are going to be rehired.... not that an additional 2500 were going to be laid off.
Still bad, but at least its a " small " start in recovery.
" While the news of the rehires is good news for 550 of the company's laid off workers, the news was not so hot for others. Around 2,500 other laid off workers received news that they would not be getting rehired "