(PTI): Giant heavy equipment maker Caterpillar says it is cutting about 2,500 jobs in the US but will also rehire 550 laid-off workers.

The 2,500 employees who are losing their jobs had been previously laid off, but were notified on Monday that they would not be returning to work.

“The company is offering a separation package for those employees. A breakdown of impacted employees by location will not be provided,” said Caterpillar chairman and chief executive Jim Owens.

He said growing signs of economic recovery, however, allowed the company to bring 550 laid-off employees back to work.

Caterpillar has slashed 18,700 jobs since late 2008 due to problems it faced during the global financial crisis.

Last week, Caterpillar reported better-than-expected third-quarter earnings of $404 million — still down 53 percent from a year earlier.