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Caterpillar to Cut Up to 10,000 Jobs, Citing Falling Demand

The shock waves from the volatility rocking China and emerging markets worldwide rolled through the American heartland on Thursday as Caterpillar, based in Peoria, Ill., announced plans to cut as many as 10,000 workers, reflecting slumping demand.
A caterpillar used to clear old cars
Caterpillar, a leading symbol of American exporting and manufacturing prowess with its iconic yellow bulldozers, excavators and dump trucks, has been hit with a one-two punch that investors worry will hurt other big American companies active in the global market. The crashing prices of commodities like oil and copper, tied to a slowdown in China, have combined to raise doubts about the ability of the American economy to sustain its momentum.
Investors already nervous about prospects for global growth reacted with dismay to the Caterpillar disclosure, sending shares in the company, one of the 30 blue-chip stocks in the Dow Jones industrial average, down 6.3 percent for the day. Earlier Thursday, the Dow was down more than 1 percent but recovered some ground, closing lower by about 78 points, or 0.5 percent. Exchanges in Europe closed down roughly 2 percent.
Although Caterpillar is affected more severely than most companies because mining businesses and other commodity producers are among its main customers, its problems illustrate the economic difficulties facing many multinationals.‎


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