Now may be a good time for Caterpillar employees to look for other employment.
According to a Ledger-Enquirer report, the Peoria, Illinois-based construction and mining equipment manufacturer announced budget cuts that result in a 5,000 jobs cut by the end of the year and as many as 10,000 jobs cut by 2018.
The company’s 2015 revenue outlook took a $1 billion hit after multiple sectors it serves struggled this year. While oil prices took a toll on Caterpillar’s oil and gas production equipment business, a construction slow-down in China chipped away 21 percent of the company’s sales in Asia-Pacific.
Now, Caterpillar expects $48 billion in revenue for 2015 and about 5 percent less than that for 2016. The company hopes the job and budget cuts will lower its operating costs by $1.5 billion.
Caterpillar has shed more than 30,000 of its workforce since 2012 and closed more than 20 sites since 2013.
The company will maintain its global headquarters in Peoria and will expand the building, but Chairman and CEO Doug Oberhelman wrote in a Journal-Star column that the plans for improvements will “still stand, although given current conditions we can’t say when the project will begin.”