Caterpillar Inc. revealed its plans to reduce its workforce as a response to softening demand across various sectors. The announcement triggered a drop in the company’s stock value, reflecting investor concerns about the economic outlook.

The heavy equipment manufacturer attributed the decision to ongoing global economic uncertainties, which have impacted sales and profitability. The company aims to streamline operations and reduce costs to navigate the challenging market conditions.

Specific details regarding the number of job cuts and affected locations were not immediately disclosed. However, Caterpillar indicated that the reductions would occur across multiple business segments and geographic regions.

Analysts suggest that the move reflects broader concerns about the health of the global economy and the potential for further slowdowns in key industries such as construction and mining. Caterpillar’s performance is often seen as a bellwether for the overall economy due to its significant presence in these sectors.

The company is expected to provide further details on its restructuring plans during its upcoming earnings call. Investors will be closely watching for updates on the company’s outlook and strategies for mitigating the impact of the economic headwinds.