Cat will slash jobs as the manufacturer records a 5 per cent fall in revenues year on year.
The mining machinery manufacturer announced plans to potentially reduce its workforce by up to 10,000 workers by 2018.
It is also considering the “consolidation and closure of manufacturing facilities”, which could “impact more than 20 facilities around the world” and around 10 per cent of its manufacturing square footage.
The company has been gradually reducing its workforce and footprint since 2012, have shut or consolidated more than 20 facilities and reducing its workforce by more than 31,000.
Between now and the end of next year the company plans to shrink its workforce by between 4000 to 5000 people, however “the company will offer a voluntary retirement enhancement program for qualifying employees, which will be completed by the end of 2015”.
Cat CEO Doug Oberhelman pointed to the continuing challenges faced in mining as the driver for the decision.
This is the third consecutive year the company has recorded a drop in sales and revenues, which if it is to continue into 2016 would mark the first time in the company’s 90 year history that it has had four consecutive years of decline.
The company has lowered its previous guidance by US$1 billion, to approximately US$48 billion.
“The $1 billion decline is a result of broadly weaker business conditions across our three large segments – Construction Industries, Energy & Transportation and Resource Industries,” Oberhelman said.
“The $1 billion decline is expected to impact both the third and fourth quarters of 2015.”
“We recognise today’s news and actions taken in recent years are difficult for our employees, their families and the communities where we’re located. We have a talented and dedicated workforce, and we know this will be hard for them,” Oberhelman said.