slumped on Thursday after the company announced significant restructuring and cost reduction actions that could involve cutting more than 10,000 jobs over the next three years, and downgraded its revenue outlook.
The company, which continues to experience weakness in the key industries it serves, said it expects a permanent reduction in its salaried and management workforce, including agency of 4,000 to 5,000 people between now and the end of 2016. Most of these losses will occur in 2015, with a total possible workforce reduction of more than 10,000 employees, including the contemplated consolidation and closures of manufacturing facilities occurring through 2018.
In addition, Caterpillar, which is looking to reduce costs by around $1.5bn, said its sales and revenues outlook has weakened and it now expects 2015 sales to be about $48bn, down $1bn from previous guidance.
For 2016, sales and revenues are expected to be about 5% below 2015, it added. This year is the company's third consecutive down year for sales and revenues, and 2016 would mark the first time in Caterpillar's 90-year history that sales and revenues have decreased four years in a row.
It said sales would be down in all its divisions but the oil and gas portion of its Energy and Transportation segment will suffer the most significant decline.
Caterpillar's chairman and chief executive officer Doug Oberhelman said: "We are facing a convergence of challenging marketplace conditions in key regions and industry sectors - namely in mining and energy.
"While we've already made substantial adjustments as these market conditions have emerged, we are taking even more decisive actions now. We don't make these decisions lightly, but I'm confident these additional steps will better position Caterpillar to deliver solid results when demand improves."
Since 2013, the company has closed or announced plans to close or consolidate more than 20 facilities and has cut its total workforce by more than 31,000 since mid-2012.
At 1547 BST, Caterpillar shares were down 6.3% at $65.80.