Whirlpool Corp. will cut about 5,000 jobs after its North American sales fell 7 percent in the third quarter due to waning demand.

In its third-quarter earnings release, the company that acquired Newton-based Maytag Corp. said its earnings from continuing operations fell 7 percent to $163 million, or $2.15 per share, compared with $175 million, or $2.20 per share, a year ago. Revenues were up 1 percent to $4.9 billion.

The company has been affected as falling home values, rising unemployment and low consumer confidence cause people to cut back on spending. Meanwhile, material and oil costs have risen dramatically, cutting into operating profits.

“We have seen a sharp drop in demand in North America and Europe during the third quarter, and we do not expect demand conditions to improve in the near term,” said Whirlpool Chairman and CEO Jeff Fettig in a release. “Our third-quarter results were negatively impacted by declining demand and record levels of cost inflations. These unfavorable factors were partially offset by improved price/mix and productivity.”

By cutting 5,000 jobs and closing its Jackson, Tenn., plant, in addition to the four facility closures already announced this year, the company is expected to save about $275 million a year.

But while demand has dropped significantly in the United States, sales abroad continue to be a bright spot. Whirlpool’s Latin America net sales jumped 22 percent to $1 billion in the quarter and sales rose 11 percent to $137 million in Asia.

Whirlpool also lowered its full-year 2008 outlook, with restructuring expenses of about $170 million compared with its previous estimate of $100 million. It expects earnings per diluted share from continuing operations to be in the $5.75 to $6 range compared with its previous estimate of $7 to $7.50.