Listen to the news and they’ll tell you, “Everything’s going to be OK.” Yet, the numbers don’t match up. Here’s just a snippet of information you probably haven’t heard.
Caterpillar announced that it was going to lay off 4,000 to 5,000 people this year. That number could reach 10,000 by the end of 2016, and the company may close more than 20 plants. Layoffs are nothing new at Caterpillar—the company has reduced its total workforce by 31,000 workers since 2012.
The problem is lousy sales. Caterpillar just told Wall Street to lower its revenues forecast for 2016 by $1 billion.
How bad does the future have to look for a company to suddenly decide that it is going to lose $1 billion in sales?
“We are facing a convergence of challenging marketplace conditions in key regions and industry sectors, namely in mining and energy,” said Doug Oberhelman, Caterpillar chairman and CEO.
Like the layoffs, vanishing sales are nothing new. 2015 is the third year in a row of shrinking sales, and 2016 will be the fourth.
So, how’s that recovery working for you?