PEORIA, Ill. — Caterpillar, Inc. will slash 10,000 production and management jobs globally – beginning with several thousand immediate layoffs in central Illinois and other U.S. CAT facilities – by 2018, the global leader in the manufacturing of mining and construction equipment announced Sept. 24.

Approximately 4,000-5,000 jobs will be eliminated by the end of 2016, CAT announced, with the majority of those cuts coming before the end of this year. The announcement is the result of cost-cutting measures designed to save the company more than $1.5 billion.

It comes after a projected fourth consecutive year of company losses due to what CAT officials describe as a weakening global economy that has resulted in less demand for heavy construction and mining equipment. The plan also calls for closing or consolidating some 20 CAT facilities, though no specific locations were named.

And though a six-block, 31,000-acre world headquarters construction project planned for downtown Peoria is still in the company’s long-range plans, "now is not the time" to move ahead with the project, according to CAT spokesperson Angela Potts.

"We do expect the impact to be significant," she told reporters. "The company remains committed to Peoria and Illinois, but plans to build a new corporate headquarters in downtown Peoria have for now been (postponed)."

The new round of announced layoffs will come following the loss of 31,000 jobs cut by the company since 2012. Global economic conditions that haven’t been experienced in the company’s 90-year history are the reason for the cuts, CAT indicated. "It is something we have to do in reaction to past, current and future market conditions. Today we lowered this year’s outlook by another $1 million, and we’re expecting it to be even lower next year," Potts said.

Peoria Mayor Jim Ardis said CAT’s commitment to the city and the state should not be questioned, and that he received assurance the world headquarters project would move ahead, though it could take up to nine years to complete.

‘That’s still a 100 percent go," he told Gatehouse Media. "We were optimistic we might see some early movement … (but) I think Caterpillar was very fair when they said this is a long-term process."

Last February, Ardis joined new Gov. Bruce Rauner, CAT CEO and president Doug Oberhelman and other dignitaries at the Caterpillar Visitors Center to announce the downtown headquarters project, which is to be comprised of three 8-story office buildings along with green space, walking and bike paths and retail options.

"Caterpillar will stay in Peoria. Repeat: Caterpillar will stay in Peoria," Oberhelman announced in February, as Rauner leapt from his chair to applaud the news.

U.S. Rep. Cheri Bustos, whose district encompasses downtown Peoria and a number of CAT facilities, said the news was devastating for local employees, their families and the economy.

"I’m deeply concerned by Caterpillar’s decision to reduce its workforce in our community," the Democrat from East Moline said. "It is imperative that city, county, state and federal leaders from our region unite with Caterpillar and others in the private sector to focus on future job retention and economic growth."

The state of Illinois will assist affected employees with job training and placement, Rauner spokesperson Catherine Kelly indicated.

CAT reported revenue of $66 billion in 2012 but is projecting $48 billion for 2015, a decrease of 27 percent.