US manufacturing giant Caterpillar has said it will have to implement a large cost-cutting program over the next few years. The move comes in response to continuously weak mining and energy sectors.
Caterpillar said Thursday it might have to slash up to 10,000 jobs through 2018 in a bid to save up to $1.5 billion (1.3 billion euros) annually.
The US industry heavyweight noted it would cut between 4,000 and 5,000 positions by the end of 2016, with most cuts to be completed in the current year.
Caterpillar had 114,233 employees globally as of December 31, according to data from Thomson Reuters.
“Caterpillar is facing challenging marketplace conditions in key regions and industry sectors, namely in mining and energy,” CEO Doug Oberhelman said in a statement.
The company pointed out the planned restructuring could affect more than 20 facilities around the world and across three large businesses – construction, energy and transportation.
The firm’s shares dropped as much as over 6 percent in early trading on the announcement.
Caterpillar also said it expected 2015 revenue to be about $48 billion, that is $1 billion lower than its previous forecast.
hg/tko (Reuters, AFP)