Slumping Caterpillar to lay off 125 workers in Lafayette

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Caterpillar Inc. said it's laying off 125 workers at its Lafayette large-engine plant because of weak product demand.

The Peoria, Ill.-based company, the world's largest maker of construction and mining equipment, said the indefinite layoffs will begin Aug. 26.

Caterpillar has a Lafayette work force of about 1,800.

Company spokesman Jim Dugan said in a prepared statement that demand for the plant's products has fallen in the past year, the Journal & Courier reports

Dugan says the company has already implemented some cost-cutting measures, including "temporary layoffs, vacation shutdowns, and a reduction in flexible workforce."

Caterpillar in July announced a 43-percent drop in earnings and cut its outlook for the rest of the year because of a slump in the global mining industry.

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