Caterpillar lays off 814 Ill. workers

PEORIA -- Construction equipment maker Caterpillar Inc. says it will lay off 814 employees at its engine assembly facility in Mossville.

Caterpillar says volumes at the facility have dropped sharply in recent months due to reduced demand for on-highway truck engines, engines for Caterpillar machines and commercial engine applications.

The company says the employees, who are involved in production, were notified of the decision on Thursday. It says the layoffs will begin Feb. 23.

Caterpillar has been working to cut costs recently to cope with the economic downturn. The company said Tuesday it was severing ties with more contract workers, though it didn't say how many.

Shares of Caterpillar fell $2.09, or 4.8 percent to $42.56 in afternoon trading.