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Cummins to cut 500 jobs

The company said the move was in response to the ongoing deterioration of the global economy, and that the job losses would come from all parts of the company.Cummins chairman Tim Solso said the company had already taken a number of actions to try to bring costs in line with reduced current demand and to meet the expected challenges of 2009.These include:Initiating temporary plant shutdowns, shortened work weeks and extending traditional holiday closing periods; Reducing by several hundred the number of contingent workers in manufacturing and logistics locations around the world; Eliminating overtime in many locations; andEliminating nearly 100 hourly positions in the company’s fuel systems plant in Juarez, Mexico, and another 85 hourly employees in the engine plant in Darlington, UK.“Despite those efforts, we have now reached a point where we will have to take more significant steps to reduce our professional workforce around the world,” Solso said. In order to minimise the impact of involuntary employment actions, Cummins said it had decided to offer a voluntary retirement package to certain active professional employees in the United States based on a clearly defined set of criteria.Those employees being offered a chance to participate in the program will be offered compensation packages, which will include salary and continuation of benefits including health care for nine months following their retirements.Cummins said the remainder of the reductions would be involuntary, with the reductions expected to take effect by December 31.

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