Caterpillar Inc. (NYSE:CAT) acknowledged Friday it will lay off about 11 percent of its workforce in Decatur, Ill., as part of what it calls an ongoing series of production cuts. The Peoria-based manufacturer said the 460 layoffs will take effect in 60 days.
Caterpillar cited falling global demand for mining equipment as the reason for the cuts and noted it aims to "bring production in line with demand," according to company representative Rachel Potts.
The company has implemented temporary layoffs, line shutdowns and shortened workweeks at other plants. However, the cuts at this central Illinois plant, producing mostly mining equipment, will be permanent.
Caterpillar is the world's largest manufacturer of mining equipment. It also makes construction equipment, gas turbines, diesel engines and railroad locomotives.
Decatur is in Macon County, which already has a 13.7 percent unemployment rate, the eighth-highest among the state's 102 counties, according to the Illinois Department of Employment Security.