Revealed: Caterpillar's Middle East dealer plans

"Dealers and distributors are not part of the plan," the American equipment manufacturer told Construction Week

Caterpillar claims its restructuring plans will not impact its dealers and distributors.
Caterpillar claims its restructuring plans will not impact its dealers and distributors.

Original equipment manufacturer Caterpillar will not cut down on its dealers even as it readies to make 10,000 job cuts over the next three years, a company spokesperson told Construction Week

On 24 September, 2015, it was announced that Caterpillar is planning another round of job cuts that could exceed 10,000 people through until 2018, as the construction and mining equipment maker adjusts to downturns in key markets that it serves.

That could amount to more than 8% of the 126,800 employees it had globally as of June 2015. 

Erik De Leye, spokesperson for Cat's Europe, Middle East, and Africa (EMEA) operations, told Construction Week how dealers would be impacted by these plans. 

"The restructuring and cost-savings plan that was announced on September 24th is across all regions and activities," De Leye said over email.

"At this stage, I cannot be more specific. Dealers and distributors are not part of the [restructuring] plan." 

The EMEA region accounted for 24.4% of Cat's total sales and revenues in 2014, De Leye added.  

In its September announcement, Cat said the job cuts and other expense reductions are expected to help lower operating costs by around $1.5bn.

The firm has trimmed its total workforce by more than 31,000 since the middle of 2012. 

US presidential candidate Donald Trump has previously taken a swipe at Caterpillar's low sales, which contributed in part to its restructuring decision.

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