Caterpillar announced yesterday that it may cut up to 10,000 jobs and close up to 20 facilities from now until 2018.
About 4,000 to 5,000 of the job cuts will come by the end of 2016, with a significant portion of them expected to come at Caterpillar’s home base in Peoria, Illinois.
Caterpillar CEO Doug Oberhelman blames the job cuts on difficult economic conditions in the mining and energy sectors. Caterpillar also admitted that they’ve seen decreased sales and revenue for the past 3 years. Low oil prices and a flagging Chinese economy have also taken their toll on Caterpillar’s profit margins.
The company did not specifically announce which facilities would be affected but said that employees would be notified when decision were made.
Caterpillar has already closed around 20 facilities and eliminated 31,000 jobs since 2012.
Caterpillar hopes that as the global economy rebounds, they will too.