The grim economic news isn't just affecting NASCAR's teams as they prepare for next month's season openers at Daytona International Speedway. Four of NASCAR's largest corporate sponsors -- including Sprint Nextel Corp. -- announced major layoffs and cutbacks Monday as a result of the worldwide economic slowdown.

In an effort to reduce labor costs by more than $1 billion, Sprint Nextel officials announced the company will eliminate 8,000 jobs -- or 14 percent of its workforce -- by the end of the March, placing a freeze on salary increases and suspending its 401(k) match for the year. The nation's third-largest wireless phone carrier posted a net loss of $326 million in the third quarter of 2008 and nearly $1.2 billion for the first three quarters of 2008.

"Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment," chief executive officer Dan Hesse said in a press release. "Our commitment to quality will not change."

Sprint gained the entitlement rights to NASCAR's premier series when it acquired Nextel in 2005. The corporation reportedly pays somewhere in the neighborhood of $75 million a year for the Sprint Cup Series as part of a 10-year contract with NASCAR, not including supplemental marketing and advertising.

The news was just as bad Monday at corporate headquarters for Caterpillar, Home Depot and General Motors.

After announcing a 32 percent drop in fourth-quarter profit, Caterpillar -- the new sponsor of Jeff Burton's No. 31 Chevrolet -- will be forced to eliminate 20,000 jobs -- about 18 percent of its workforce -- through a combination of layoffs and buyouts.

"While 2008 was our sixth consecutive year of record sales and revenues, it was an extraordinarily challenging year," Caterpillar chairman and chief executive officer Jim Owens said in a statement posted on the company's Web site. "We have initiated actions which will remove about 20,000 workers from our business and every indirect spent dollar will be heavily scrutinized."

Approximately 2,500 workers have already accepted buyouts and some 8,000 contract workers will be eliminated. In addition, 4,000 full-time factory workers have been laid off.

Home Depot, NASCAR's official home improvement warehouse, announced it will close 34 Expo Design Center stores and 14 other specialty stores over the next two months. That will account for a 2 percent reduction in the company's workforce, or about 7,000 jobs.

"Exiting our Expo business is a difficult decision, particularly given the hard work and dedication of our associates in that business and the support of our loyal customers," chairman and chief executive Frank Blake said in a statement. "At the same time, it is a necessary decision that will strengthen our core Home Depot business."

Earlier this month, the company announced that it would end its Olympic sponsorship program, which had been in place since 1992. According to media ratings company Nielsen Co., Home Depot reportedly spent between $25 and $30 million in advertising for the last two Olympic games, and $12 million on NASCAR advertising in 2007. According to one tracking firm, Home Depot's total budget for sports sponsorships in 2007 was between $60 and $65 million.

General Motors Corp. announced plans to cut shifts this spring at plants in Ohio and Michigan, eliminating about 2,000 positions. In addition, production will be decreased at 13 other plants in the United States and Canada.

Less than a month ago, GM announced the temporary closure of 20 plants in North American in response to the slowdown in vehicle sales. All of those plants are expected to resume production during the first quarter of 2009, with the exception of the plants listed in Monday's release.

About 1,200 workers will be laid off at GM's Delta Township plant near Lansing, Mich., beginning March 30 when GM eliminates one shift. Another 800 workers will be affected by the elimination of another shift at the Lordstown, Ohio, facility.

"We have hope things will turn and change," UAW Local president Dave Green said. "This is no fault of our own. People are not purchasing cars right now."