As the credit crunch bites, even the biggest companies are struggling to make ends meet. The worlds largest heavy construction equipment manufacturer has announced plans to cut white collar pay by up to 50%.

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It has emerged that Caterpillar will be reducing its executive compensation by half, while other management and support staff face a reduction of as much as 15%.

Caterpillar last week also announced 800 job losses at its plant in Illinois.

The UK branch of Caterpillar employs almost 10,000 people. However, it is unclear what impact the recent decision will have on the company’s UK division.

(DW/KMcA)