Cummins to shed more jobs
COLUMBUS, Ind. — Cummins has announced it will reduce its global workforce by 800 positions by the end of February.
The engine maker will also freeze salaries for the year. Cummins said it will also be reducing its officers’ salaries by 10% in 2009. The company is continuing to cut costs, reduce spending in all areas and shut down plants temporarily as required.
Combined with previous job cuts in December, Cummins will have reduced its global workforce by more than 1,400 positions – or 10%.
“It is unfortunate that after five straight years of record performance and greatly improved business fundamentals we are being forced to take these difficult actions,” said Tim Solso, Cummins chairman and CEO. “While these steps are very painful, they are necessary to keep Cummins competitive through this global recession so we can emerge a stronger company when the economy and our markets recover.”
“It is our expectation that these workforce reductions will align our cost structure with our projected business levels, and allow us to meet customer requirements and preserve our ability to invest for the future,” Solso added.
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