Caterpillar Inc. said it will combine two divisions dealing with power and energy, a plan the company will fully execute by June.
The company will create a new electric power, marine, and oil and gas division by consolidating the electric power with the marine and petroleum power divisions.
"Consolidating these energy operations, along with the recently announced integration of two divisions within customer and dealer support, will bring efficiencies and a streamlined leadership team. With these changes we will have reduced executive leadership by 13 percent since 2013," Caterpillar chairman and CEO Doug Oberholman said in a statement.
Steve Niehaus, vice president of the electric power division, will retire after a 27-year career with the manufacturer.
“Much of Steve’s career has been spent in marketing and commercial engines, and in his most recent position he has provided critical leadership in strengthening and aggressively growing Caterpillar’s electric power business,” said Jim Umpleby, Caterpillar group president responsible for energy and transportation.
“He has lived all over the world helping our customers and employees develop and grow — from Saudi Arabia to Brazil to Singapore and throughout the United States. I’m grateful to Steve for his many contributions to Caterpillar and wish him well in retirement.”
Last year Caterpillar said it would consolidate and could lay off as many as 10,000 employees by 2018.