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Indiana-based Cummins plans 2,000 job cuts

Worldwide, engine maker has over 62,000 employees
Posted at 4:00 PM, Nov 25, 2019
and last updated 2019-11-25 16:06:38-05

COLUMBUS—A slumping demand for its products is behind Cummins decision to slash about 2,000 jobs, worldwide.

The Columbus, Indiana-based engine maker has 62,600 employees, with about 10,000 at its Indiana facilities. How many from Indiana will be let go hasn't been determined.

Katie Zarich, External Communications Director for Cummins, says the company must reduce costs because product demand has fallen off faster than expected. "We have already taken several actions in response to declining revenues," she said. "This includes reduced discretionary spending across the company, several global efforts to optimize our operations, voluntary headcount reductions, and we continue to align production with demand at our manufacturing facilities."

Those efforts have not been enough, so the company will eliminate jobs—just over three percent of its workforce, by early next year.

"We understand this is incredibly difficult for those directly impacted and for all employees across the company," said Zarich. "Our employees are important to the success of our company and necessary actions like this are incredibly tough and disappointing. However, by taking actions now, we can navigate this downturn and emerge stronger when markets return just as we have done in the past."