The persisting fall in demand for its construction equipment has forced Caterpillar Inc to cut nearly 2,500 US jobs, as well as shutdown its Jefferson, Georgia. In the month of January, Caterpillar had announced 22,000 job-cuts; and in February, voluntary early retirement packages were offered to an additional 2,000 production workers.

While the company intend shifting the fuel systems production job done at Jefferson to two other Caterpillar plants - those in Thomsonville, Georgia; and Pontiac, Illinois - the 89 Jefferson plant employees will lose their jobs, along with 2,365 other employees in three states.

Out of the recently-announced layoffs, a majority will come at two of Caterpillar's Illinois plants - the East Peoria plant, which produces track-type tractors and pipe layers; and the Aurora plant, which makes wheel loaders and hydraulic excavators. While 911 workers of the Peoria plant will lose their jobs, 815 workers at the Aurora plant will be laid-off.

The remaining job-cuts will come from Caterpillar's engine plant in Griffin, Georgia, where 200 employees will be laid-off; and in Layfette, Indiana's large engines manufacturing plant, where 439 employees have been served the layoff notices.