Caterpillar Inc. shares slumped 6% in premarket trading Thursday, after the company announced a restructuring program that will see it shed 10,000 jobs by the end of 2018. The company is aiming to save $1.5 billion annually through measures that include layoffs of 4,000 to 5,000 people by the end of 2016 and plant closures. "We are facing a convergence of challenging marketplace conditions in key regions and industry sectors -- namely in mining and energy," Chief Executive Doug Oberhelman said in a statement. "While we've already made substantial adjustments as these market conditions have emerged, we are taking even more decisive actions now." The company is lowering its outlook for 2015 sales and revenue by $1 billion to $48 billion, and expects 2016 sales and revenue to be about 5% lower than 2015. Shares have lost 23% in the year so far, while the Dow Jones Industrial Average is down 8.7%.
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