Caterpillar lays off final 50 employees in London, Ont.
Equipment giant plans 10,000 layoffs worldwide as revenue slides with oil and gas slowdown
The remaining 50 employees at Caterpillar's Electro-Motive Diesel operations in London, Ont., have been handed layoff notices and their jobs will disappear by Christmas.
Caterpillar shut down its rail manufacturing facilities in London, Ont., in 2012, after locking out the 450 workers in a labour dispute in which the U.S. giant demanded a 50 per cent pay cut.
The remaining office in the southwestern Ontario city were locomotive testers, design engineers and production planners.
"All remaining Electro-Motive Diesel employees in the London, Ontario area have been notified that their current office location is being consolidated with other facilities by the end of 2015," Caterpillar said in an email statement.
They were laid off as part of a cost-reduction scheme that will lead to the loss of up to 10,000 jobs across Caterpillar's worldwide operations by 2018, according to a company spokeswoman.
The Peoria, Illinois, construction and mining machinery maker says it plans to close more factories and lay off administrative personnel in a bid to cut costs.
In September, Caterpillar downgraded its 2015 revenue expectations by $1 billion to about $48 billion, and it said 2016 sales should be about 5 per cent lower.
The company has been hurt by the slowdown in the oil and gas sector and a pullback in spending on equipment around the world because of a slowing global economy.