Caterpillar Cutting 2,500 Jobs
Caterpillar (CAT) is widely known as a huge global economic barometer since it is involved internationally and will do well when economic activity is high. I recently did a post on the reality of Cat’s recent earnings announcement despite CNBC’s glee over “amazing numbers”. The reality was that their quarter really wasn’t that great.
Now, Cat is announcing that 2,500 of their laid off workers will be permanently cut. I view this as a clear indicition thatwe are not returning to pre-crisis economic levels. Chief Executive Jim Owens said:
It’s important to remember that we are not close to the record-breaking demand we experienced from 2004 to 2008.
The economy might be stabilizing, but rebounding? I’m still in the camp of skepticism.