CAT cutting 120 jobs in Peoria

The world's largest equipment manufacturer for the construction and mining industry Caterpillar Inc. announced Wednesday nearly 100 full-time production employees in East Peoria will be indefinitely laid off local radio news reports.

The permanent staff layoffs will take effect January 19, while a further 20 contract workers won't have their assignments renewed.

Caterpillar blames continuing weakness in the mining industry for the layoffs. The 90-year old company manufactures haulers, excavators and other mining equipment at the East Peoria facility in Illinois.

"While some cost reduction measures have already been implemented, including temporary shutdowns and reductions in the flexible workforce," the statement continues, "more permanent measures must be taken in the near term."