Cummins (CMI) to Further Reduce Workforce; Officers to Receive 10% Pay Cut for '09

January 13, 2009 8:26 AM EST

Cummins Inc. (NYSE: CMI) announced today that it will reduce its permanent professional workforce worldwide by at least 800 employees by the end of February and freeze salaries for the year.

As part of the latest reductions, the Company will offer a second voluntary retirement package to certain active professional employees in the United States. The remainder of the reductions will result from involuntary terminations from Cummins' operations around the world.

The Company also will reduce the salaries of its officers by 10% for 2009. In addition, Cummins will continue to monitor production volumes at individual manufacturing plants and take whatever actions are necessary as dictated by customer demand for its products.

This is Cummins' second round of reductions in response to the worsening global economic crisis and its impact on the Company's markets and sales. In addition to job reductions, Cummins aggressively cut costs, reduced spending in all areas and initiated temporary plant shutdowns, shortened work weeks and extended traditional holiday closing periods during Q408.

Combined with its previous actions taken in December, the Company will have reduced its professional workforce by more than 1,400 people or 10%. In addition, Cummins will have reduced its hourly workforce by more than 600 and cut approximately 2,500 contingent workers.

Cummins, Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide.

Related Categories

Corporate News

Stocks Mentioned

Related Entities

• Layoffs

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?