Caterpillar to slash 20,000 jobs

US construction equipment giant Caterpillar announced today that it intends to cut about 20,000 jobs worldwide to cope with plunging sales amid a sharp economic slowdown.

US construction equipment giant Caterpillar announced on Monday that it intends to cut about 20,000 jobs worldwide to cope with plunging sales amid a sharp economic slowdown.

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The layoffs, equivalent to about 18 per cent of its workforce, will include 4,000 production and 7,500 administrative staff as well as about 8,000 contract staff.

The cuts would be accompanied by substantial reductions in overtime and freeze on hiring and salaries for administrative staff, the company said as it reported 2008 fourth-quarter profit dropped 32 per cent to 661 million dollars.