Cummins to cut as many as 1,500 jobs by end of year
Company employs 44K worldwide
Last Updated: 429 days ago
COLUMBUS, Ind. - Cummins Inc. announced Tuesday that it plans to cut as many as 1,500 jobs by the end of the year, but the company did not indicate exactly where the cuts would take place.
Cummins employs close to 8,000 Hoosiers and has about 44,000 employees worldwide.
The Columbus-based company also lowered its revenue outlook from $18 billion to $17 billion for 2012.
Company leaders said an uncertain global economy and decreased demand for Cummins' products precipitated the changes.
"We continued to see weak economic data in a number of regions during the third quarter, increasing the level of uncertainty regarding the direction of the global economy," Tom Linebarger, chairman and Chief Executive Officer of Cummins said in a news release. "As a result of the heightened uncertainty, end customers are delaying capital expenditures in a number of markets, lowering demand for our products."
The company said it will pursue multiple ways of cutting costs in addition to the workforce reduction, including planned work week reductions and shutdowns at some manufacturing facilities.
"Taking these actions now will allow us meet customer needs, maintain strong financial performance and allow us to capitalize on future growth opportunities," Linebarger said.
Columbus residents told RTV6 they think the Cummins announcement and layoffs will impact the city.
"Columbus kind of runs on Cummins," said resident Nandhini Sivabalakrishnan. "A lot of people (like us) have moved from Milwaukee to Columbus because of Cummins."
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