LAFAYETTE, Ind. – Caterpillar Inc. says it is laying off 125 workers at its Lafayette large engine plant because of weak product demand.
The Peoria, Ill.-based company that’s the world’s largest maker of construction and mining equipment said the indefinite layoffs are effective Aug. 26.
Caterpillar and has a Lafayette workforce of about 1,800.
The Journal & Courier reports (http://on.jconline.com/15EwuEU) that company spokesman Jim Dugan said in a statement that demand for the plant’s products has fallen in the past year.
Dugan said the company has already implemented some cost-cutting measures, including “temporary layoffs, vacation shutdowns, and a reduction in flexible workforce.”
Caterpillar in July announced a 43 percent drop in earnings and cut its outlook for the rest of the year because of a slump in the global mining industry.