NEWS RELEASES
Cummins To Lay Off 2,000 Workers
Editor's Note: This news item was retrieved and first published through Indianapolis Star's website.
COLUMBUS, Ind. - The IndyStar reports that Cummins Inc. plans to lay off 2,000 salaried employees in the first quarter of 2020. Cummins, the world’s largest manufacturer of Class 8 truck engines, employs more than 10,000 people in Indiana and 62,610 people globally. The company is expecting 2019 revenues to be down about 2% as third-quarter revenues decreased 3% to $5.8 billion over the same period last year with international revenues decreasing 8%.
"Unfortunately, we must do more to reduce costs because the downturn is happening at a sharper pace than we experienced in the previous two cycles," company spokesman Jon Mills told the IndyStar in an email. During a recent analysts' presentation, COO Tony Satterthwaite said that most of the markets in which Cummins participates have either peaked or are on their way down, with weakening markets in India, China and the North American truck market. Cummins plans to deal with the downturn by launching its New Power business, which includes its existing electrification efforts as well as fuel cell and hydrogen production technologies, and by reducing costs across the company by $250 million.
Read more on Cummins future plans on the company’s investors website.