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Cummins To Cut 800 More Jobs, Slice Salaries

Engine-Maker Cites Poor Economy

POSTED: 9:16 am EST January 13, 2009

Cummins Inc. said Tuesday it will cut at least 800 jobs by the end of February and freeze remaining employees' salaries for the year.

The Columbus, Ind.-based engine manufacturer also plans to offer a voluntary retirement package to some employees.

The company said it will reduce its officers' salaries by 10 percent in 2009 in response to poor economic conditions.

Cummins said it has taken other measures to blunt the blow of a worsening economy, including cost cuts, temporary plant shutdowns and shortened work weeks.

By the end of February, the company said it will have reduced its salaried workforce by 10 percent, or about 1,400 people. Additionally, more than 600 hourly workers have been let go since the economic downturn began.

“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 Chief Executive Officer, in a statement. “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."

In January 2008, Cummins announced that it planned to add 500 salaried jobs over two years.

The company makes diesel and natural gas engines.

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