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Caterpillar cuts 2,500 laid-off workers; about 550 others to return to work by end of 2010

Peoria, IL (AP) — Caterpillar Inc. will permanently cut about 2,500 laid-off employees, and will bring back 550 others by the end of next year, according to the company.

Caterpillar, the world’s largest maker of mining and construction equipment, has struggled with lower demand since the world economy deteriorated late last year. Lower prices for commodities such as iron ore, a key steel ingredient, have undercut orders for its giant mining trucks. A housing market slump has eaten into sales of other machines, such as bulldozers and excavators.

On Monday, the Peoria, Ill.-based company had started notifying the 2,500 employees of the permanent layoffs, according to the company. Company officials plan to offer them severance packages.

Meanwhile, according to the company, about 550 other laid-off workers have returned to work or will return before the end of 2010.

Russia emerges from recession as economy grows in third quarter

Moscow (AP) — Russia technically emerged from recession in the third quarter after official data on Monday showed economic activity grew 0.6 percent from the previous three months — the first quarterly rise since the crisis struck a year ago.

Despite the increase, gross domestic product was still 9.4 percent below year-earlier levels, underscoring the amount of damage the recession and lower oil prices have wreaked on Russia’s economy .

According to the Economic Development Ministry, in the month of September, gross domestic product fell 8.6 percent on the year, less than the 10.5 percent contraction in August.

One comment

  1. So…Russia and China are showing many signs of good economic recovery. The United States is continuing to slide downward.

    Communist countries are now doing better that the capitalist country.

    Maybe we need to stop all this flirting with Socialism we’re doing…and just go straight to communism!

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