Caterpillar to Trim 200 Jobs in Spalding, Other Georgia Operations Escape Cost-cutting Moves

Tue August 20, 2002 - National Edition

Caterpillar will lay off about 300 workers, including 200 at its Spalding County plant, because of continued weak demand for its large power services systems.

The company said the layoffs won’t affect other Georgia operations in Atlanta, Jefferson, LaGrange, Thomasville and Toccoa.

The Spalding County plant, which opened in April 2000, is just outside Griffin.

After the layoffs, which became effective on Aug. 19, the plant will have about 500 employees.

The other job cuts will be in Lafayette, IN, said Benjamin S. Cordani, a spokesman for Peoria, IL-based Caterpillar.

The layoff news followed disappointing second-quarter results the company released last month.

Net income for the quarter ended June 30 tumbled 26.2 percent to $200 million, or 58 cents per share, from $271 million, or 79 cents per share, in the year-earlier period.

Part of that decline was due to a drop in sales of large engines, which is what the Spalding plant produced.

To cut costs, the company began furloughing employees one week a month earlier this year.