Cummins Inc. Announces Workforce Reduction
Cummins Inc. said it would reduce its salaried workforce by approximately 350 employees over the next four weeks. The reductions, targeted in Cummins’ engine business, are part of continued actions by the company to further reduce costs to address the drop in demand in engines for the North American heavy-duty truck market. “Last week, we took steps to further reduce our hourly workforce in southern Indiana by 150 employees,” said Tim Solo, chairman and chief executive officer for Cummins. “Including today’s announcement, since the beginning of the year, we have reduced our workforce in the engine business by the equivalent of nearly 900 employees.” Cummins said that the costs of the workforce reductions, as well as other restructuring activities yet to be announced, would be included in a charge in the fourth quarter. Cummins, headquartered in Columbus, IN, is a producer of diesel engines above 200 horsepower. The company provides products and services for customers in markets worldwide for engines, power generation, and filtration. Cummins reported record sales of $6.6 billion in 1999.
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