Caterpillar, which has been hiring workers at some of its U.S. plants recently, continued its downsizing efforts in Clayton with Wednesday's announcement that it is laying off 121 workers.
The latest layoffs follow cutbacks in Clayton that were initiated in April and December 2008. Overall, Caterpillar laid off hundreds of workers in the Triangle last year as the recession hurt demand for its products. The bulk of the company's 1,800 North Carolina workers are at operations in Clayton, Cary and Sanford.
The layoffs by one of Clayton's largest employers came on the same day that Caterpillar announced plans to hire 500 workers to expand its generator plant in Newberry, S.C. The Peoria, Ill.-based company also said last month that it was recalling about 100 laid-off workers at an Indiana plant because of increased demand.
But Caterpillar did have some upbeat news for its Clayton workers. Spokesman Jim Dugan said the company is making a significant investment in a new assembly line that, combined with a shift of production from overseas, will require adding workers in the not-too-distant future. He could not say how many might be recalled or when.
Wednesday's layoffs are part of a previously announced corporate restructuring that shifts production of backhoes to the United Kingdom. The layoffs take effect in 60 days.
In turn, Caterpillar also is shifting production of wheel loaders, a type of earth-moving equipment, from the same U.K. plant to Clayton. The Clayton plant already churns out wheel loaders, but the production shift plus the new assembly line will increase the number of models it produces.
The new line will produce a next-generation wheel loader designed to comply with federal emissions standards that take effect in 2012, Dugan said. Pilot production of the new model is expected to begin next spring or summer.
Employees were previously told that layoffs were looming, and in the face of that the vast majority of those laid off Wednesday signed up for voluntary incentive packages offered by the company, Dugan said. He declined to provide details about the packages.
Clayton Mayor Jody McLeod, who attended a meeting at the Caterpillar site on Wednesday, said company officials assured workers they would offer retraining options as laid-off employees look for new jobs.
When the new production line is installed, some workers could get rehired at Caterpillar, McLeod said.
McLeod said he was disappointed about the layoffs, but he's hopeful about the future of the company in Clayton.
"In this economy, everybody understands that companies are having to restructure," he said.
Johnston County has gotten good news on the job front in the last several months. Drugmaker Talecris Biotherapeutics is expanding its operations in Clayton, and Northeast Foods, which supplies buns to McDonald's restaurants, announced in February that it will build a bakery in Clayton.
"We pick up jobs here and then we turn around and lose jobs," said Johnston County Commissioner Allen Mims, who expressed disappointment about Caterpillar's move. "Until things pick up, I guess that's the name of the game."
Last year, Caterpillar eliminated 19,000 jobs worldwide, leaving it with 93,000 workers. Its 2009 revenue declined 37 percent to $32.4 billion. Profit declined 75 percent. However, the company expects revenue this year to rise between 10 percent and 25 percent.
