Cat Cuts Employee Salaries

Caterpillar Inc said the company is cutting white-collar pay by up to 50% and offering buyouts to some employees, as it looks to cut costs during what it characterized as “uncertain times.” The company also said it planned to lay off 814 workers at its Mossville, IL, engine assembly plant, Reuters reports.

Caterpillar said compensation for most senior executives would be cut by as much as 50%, while pay for senior managers will be reduced 5% to 35% and other management and support staff will see cuts of up to 15%. Caterpillar said the cuts would come in the form of reductions in the company’s incentive compensation program and equity-based compensation.

Experts say takebacks are a sign of things to come at many U.S. companies in the new year, even at seemingly healthy ones.