US construction equipment giant Caterpillar has announced plans cut about 20,000 jobs worldwide to cope with plunging sales amid a sharp economic slowdown.
The lay-offs, equivalent to about 18% of its workforce, will include 4,000 production and 7,500 administrative staff as well as about 8,000 contract staff.
The cuts would be accompanied by substantial reductions in overtime and a freeze on hiring and salaries for administrative staff, the company said.
The news came as it reported that its 2008 fourth-quarter profit dropped 32% to $661m.
Earlier this month it was announced that more than 250 workers at an engineering company in the North owned by Caterpillar were being made redundant.
FG Wilson, a designer and builder of diesel and gas generators, said it was proposing a cut of 260 in its permanent workforce because of a fall-off in orders.
