Stimulus? 20,000 Caterpillar Job Cuts

News of 70,000+ in layoffs today.  Among these, Caterpillar’s announcement of 20,000 to be furloughed stands out.  The importance of CAT’s announcement lies their role as a major player in the construction business.  If the stimulus plan is all about generating economic activity via infrastructure projects then companies like CAT should be among the first beneficiaries.

These huge job cuts show that the execs at CAT don’t see any stimulus in the short term, in the US or globally.  From CAT’s announcement as reproduced in the WSJ:

We expect 2009 will be the weakest year for economic growth in the postwar period. We are expecting recessionary conditions to persist in most of the world throughout the year, with no growth in the world economy.

2009 will be the weakest year since WWII. Ouch.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s