Caterpillar, the world’s largest construction and mining equipment maker, says it will permanently cut two thousand 500 jobs in the US. But the news comes as signs of economic recovery have allowed it to rehire five hundred and fifty workers it had previously laid off. 

The company has cut about 34 thousand full-time and contracted workers globally during the downturn.  Caterpillar shares rose two point one to fifty-eight point 85 dollars in New York.

The two thousand five hundred staff who are losing their jobs had previously been laid off, but will now be offered severance packages. 

Last week, Caterpillar reported a stronger-than-expected profit of four hundred and four million dollars fir the third quarter till down 54 percent from a year earlier.

The company had predicted that sales next year would rise by 10 – 25 percent.