Caterpillar is combining two divisions, the Electric Power and Marine & Petroleum Power Divisions (MPPD), into a new unit called "Electric Power, Marine and Oil & Gas" by June 2016. The new division will be led by current MPPD vice president Tom Frake.
"Consolidating these energy operations along with the recently announced integration of two divisions within Customer & Dealer Support will bring efficiencies and a streamlined leadership team," CEO Doug Oberhelman said. "With these changes, we will have reduced executive leadership by 13 percent since 2013."
The move will follow the retirement of Steve Niehaus, currently VP of the Electric Power Division, after a 27-year career with the company.
Last year Caterpillar said the company would consolidate and could layoff up to 10,000 employees by 2018.
Source: Seeking Alpha