Due to weakening outlooks on sales and revenue, Caterpillar will undergo a significant restructuring plan in the hopes of shedding roughly $1.5 billion in operating costs, including a possible reduction in staff of more than 10,000 people by the end of 2018.

Caterpillar said that the most recent forecast predicts that 2015 sales and revenues will be $48 billion, or $1 billion lower than the $49 billion estimated in a previous outlook. In 2016, sales and revenues are expected to drop by 5% compared to the current year. If those projections hold true, it would mark the first time in Caterpillar’s history that it has experienced a decrease in sales and revenue four years in a row.

Before the end of 2016, up to 5,000 jobs will be cut, with the bulk occurring before the end of this year. A total workforce reduction of 10,000 could take place before the end of 2018.

“We are facing a convergence of challenging marketplace conditions in key regions and industry sectors – namely in mining and energy,” said Doug Oberhelman, Caterpillar chairman and CEO. “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.”

Along with cutting labor costs, Caterpillar also plans to lower selling, general and administrative costs, which it said will account for half of the company’s planned $1.5 billion cost cut.

On a related note, Caterpillar’s reported a decrease in the majority of regions and segments in its retail statistics release for August. The energy and transportation sector was hit the hardest, with a 21% total decrease.