Caterpillar cost lockdown affects jobs

Caterpillar is rapidly shedding jobs as part of a cost cutting exercise.

CAT 966

A new M Series 966 in action Image: Caterpillar

The contruction and off-highway vehicle maker, closely watched by analysts as an industry benchmark, is attempting to reduce costs.

The drive to cut outgoings has involved closing and consolidating a number of facilities across the US including Virginia, West Virginia, Texas and Minnesota. Canada has also seen a number of plant closures.

The "cost lockdown" as analysts have described it, has translated into the loss of 13,000 jobs and has, according to CAT, come as a result of a global drop in demand for mining equipment.

The cuts have been made at a time when CAT also announced the launch of its new M Series 966, 972 wheel loaders.