The plant manufactures equipment used in the mining industry. The U.S. heavy equipment manufacturer's global dealer sales have been in negative territory since late last year, the Chicago Tribune reported Saturday.
Caterpillar issued a statement saying the layoffs -- affecting 11 percent of the workforce at the plant and set to take effect within 60 days -- are intended to position the company for long-term success, the Tribune reported.
"While some cost reduction measures, such as temporary layoffs, shutdowns and shortened workweeks, have already been implemented, more permanent measures must be taken in the near-term," Caterpillar said.
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