Cummins to reduce
Dec 9, 2008 3:21 PM
Cummins Inc, Columbus IN, will reduce its professional workforce worldwide by at least 500 employees by the end of 2008 as a result of the continued deterioration in the US economy and many other key markets around the world, according to Cummins information.
Some employees in the United States will be offered voluntary retirement packages that include salary and continuation of benefits, including health care, for nine months following their retirements. The remainder of the reductions will be involuntary.
In other cost-cutting actions the company has:
•Initiated temporary plant shutdowns, shortened work weeks, and extended traditional holiday closing periods.
•Reduced by several hundred the number of contingent workers in manufacturing and logistics locations around the world.
•Eliminating overtime in many locations.
•Eliminated nearly 100 hourly positions in the company’s fuel systems plant in Juarez, Mexico, and another 85 hourly employees in the mid-range engine plant in Darlington, England, United Kingdom.
In addition, Cummins has aggressively cut costs and reduced spending in all areas, including prioritized information technology and capital spending to focus on the company’s most pressing needs and projects; severely restricted hiring across most of the company; and cut discretionary spending, such as travel and conferences.
Cummins said it will continue to use its rings of defense strategy to reduce manufacturing and logistics costs in the future, as well as continue looking for other ways to cut costs throughout the company.
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