Whirlpool Corp. said Tuesday it will cut about 5,000 jobs by the end of 2009, due in large part to the long downturn in the U.S. housing market.

The nation's largest home appliance maker also reported that its earnings fell 7 percent during the third quarter on lower global unit volumes and higher material costs. Whirlpool lowered its earnings outlook for the year and announced price increases.

Whirlpool officials received more sobering news Tuesday upon learning that consumer confidence had plunged to its lowest level on record. The Conference Board reported that its index dropped to 38 in October from 61.4 in September. That bunker mentality makes it more likely shoppers will retrench further, throwing the economy into a tailspin.

Shares of Whirlpool dropped 18 percent, or $9.14, to $40.89 in midday trading after trading as high as $98 within the past year.