Caterpillar, which recently hired workers at some U.S. plants, continued to downsize in Clayton, N.C., with last week’s announcement that it is laying off 121 workers, Newsobserver.com reported. The layoffs follow cutbacks in Clayton that were initiated in April and December 2008.

The layoffs came on the same day Caterpillar announced plans to hire 500 workers to expand its Newberry, S.C., generator plant. The company is also recalling about 100 workers at a plant in Indiana because of increased demand.

However, the layoffs might be short-lived. Caterpillar spokesman Jim Dugan said that Caterpillar is making an investment in a new assembly line that will require adding workers soon, as will the shift of some production from overseas.