Revenue expected to fall 5 per cent in 2016
(Reuters) — Caterpillar Inc said it could cut up to 10,000 jobs through 2018 as part of a restructuring plan to save up to $1.5 billion annually.
The company's shares fell as much as more than six per cent to US$65.77 in early trading on Thursday.
Caterpillar said it would cut 4,000-5,000 jobs by the end of 2016, with most of them in 2015.
The company had 114,233 employees as of Dec. 31, according to Thomson Reuters data.
Caterpillar also said it expected 2015 revenue to be about US$48 billion, US$1 billion lower than its previous forecast.
Revenue is expected to fall about five per cent in 2016, the company said.
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 said the restructuring could impact more than 20 facilities around the world and across its three large businesses - construction, resources, and energy and transportation.
