Late last month, Caterpillar Inc, announced it plans to trim 670 jobs total, including the 350 at the this East Peoria plant.

While it was considered by many throughout Tazewell County as the other shoe to drop, Caterpillar Inc.’s recent announcement it was planning to cut 350 jobs at its East Peoria plant still sent shock waves throughout the area.

It is the latest in a series of cost-cutting steps for the heavy equipment manufacturer. In September, Caterpillar executives announced plans to trim as many as 10,000 jobs, globally, over an unspecified period of time. In November, local executives hinted that operations in East Peoria could be consolidated.

Caterpillar, a publicly traded company, gave its quarterly earnings call to investors Thursday, Jan. 28, and the results were lackluster. A day later, announcement of the cuts came down. The company announced a concrete plan to trim 670 jobs total, including the 350 in East Peoria.

As part of the cuts, Caterpillar’s Building HH will be shuttered by late 2018. The local layoffs are expected to take place through a series of stages, beginning this week, and impact production and office employees. An unspecified number of local employees who are not laid off could see their pay or hours reduced as part of the cost-cutting plan.

East Peoria Mayor Dave Mingus publicly stated his concerns of the retrenchment and job cuts immediately after word came down from corporate officials.

Mingus could not be reached for comment for this story, but Commissioner Tim Jeffers indirectly mentioned the news during his invocation at the start of the East Peoria City Council meeting Tuesday, Feb. 2.

“We do pray for the community and the job situation we have,’ Jeffers said. “There are many more people facing a layoff or change in business and so forth. We’re aware of those things, and we pray that we uphold our neighbors and that we work together to support one another as best we can.”

Caterpillar’s parts and distribution center in Morton is not impacted by the recent announcement. Village President Ron Rainson said he was grateful to learn of this, though he is keeping the role of the company’s top leadership in perspective.

Caterpillar, Inc, has cited decreased global sales in its mining equipment as one of the reasons for its financial struggles in the past few years. (Photo courtesy Caterpillar Inc.)

He is now retired, but Rainson’s professional background includes top management positions, some within publicly traded companies.

“It’s not unusual for big corporations to make this kind of move,” Rainson said. “They want to show Wall Street they are serious about (stemming the tide of declining income). These guys will make it. This is a strong company.”

In the same breath, Rainson said he is sympathetic to the impacted employees, some of whom live in Morton.

“It’s like an open wound,” Rainson said of the ongoing talk of layoffs. “It’s a very painful process … but it has to be done to whether this storm.”

Caterpillar’s financial performance, which has included three consecutive years of revenue declines, is frequently attributed to a downturn in the mining industry, which is a large part of the company’s business.

As Caterpillar’s announcement takes hold, various civic leaders and organizations and elected officials have pledged to work in tandem to address the economic impact of Caterpillar’s announcement. Efforts to assist persons losing their jobs also will be announced in the coming months.

Tazewell County Board Chairman David Zimmerman said he is interested in doing his part to ensure the county’s economy and livelihood of those impacted are addressed.
“Caterpillar’s struggles will definitely have an impact on our county and region,” Zimmerman said.

–Caterpillar layoffs, closings shake Tazewell County region–