Additional Caterpillar (CAT) Layoffs A Blow To Obama's Stimulus Plan

Construction equipment maker Caterpillar (NYSE: CAT) said it is firing 89 workers and will layoff an additional 2,365 workers at five U.S. plants due to slow demand.

Caterpillar is closing its Jefferson, Georgia fuel facility which led to the 89 job losses. The additional layoffs occurred in Georgia, Illinois and Indiana. The layoffs included 245 management position that were previously announced. In January, Caterpillar cut 22,000 jobs and began a voluntary early retirement plan that would eliminate an additional 2,000 workers.

The new layoffs a Caterpillar are a blow to President Obama's economic stimulus plan, which was centered around "shovel ready" projects. In February, when campaigning on the economic stimulus plan, Obama said the CEO of Caterpillar told him the company would be able to rehire some of the recently laid off workers once Congress passes his stimulus package. Caterpillar CEO Jim Owens backed off that promise, saying they will probably have to layoff more people before they start hiring again. Well it looks like Owens is keeping his word, albeit to the detriment of the economy.

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