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The company will also 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 the fourth quarter of 2008.
Combined with its previous actions taken in December, the company will have reduced its professional workforce by more than 1400 people, or 10%. In addition, Cummins will have reduced its hourly workforce by more than 600 and cut approximately 2500 contingent workers.
“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, chairman and chief executive officer. “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.”
Visit www.cummins.com for more information.