PEORIA, Unwell. (AP) – Caterpillar Inc. is shifting its headquarters to the Chicago space and will not construct a brand new complicated in its present Peoria location.
The transfer comes as the corporate faces a weak gear market that has been slicing into its backside line. Final week, the farming and development gear maker reported a wider fourth-quarter loss on fees and better restructuring prices. It has been chopping jobs and amenities during the last a number of years.
The corporate says it will not construct the beforehand introduced headquarters complicated in Peoria as a result of a “difficult market circumstances and the necessity to prioritize assets to concentrate on progress.”
Caterpillar stated the overwhelming majority of our individuals will stay in central Illinois. The present Caterpillar constructing in Peoria, Illinois will proceed for use.
The corporate says it’ll find a restricted group of senior executives and help features within the Chicago space later this yr. It calls Chicago a extra strategic location. Caterpillar expects about 300 individuals to be based mostly on the new location.
CEO Jim Umpleby says finding Caterpillar’s “nearer to a worldwide transportation hub, comparable to Chicago, means we will meet with our international clients, sellers and staff extra simply and often.”