The Republic staff reports
Cummins Inc. announced today that it will reduce its permanent professional workforce worldwide by at least 800 employees, freeze salaries and cut officers' salaries by 10 percent.
Combined with professional jobs cut in December, the company will have reduced its professional workforce by more than 1,400 people or 10 percent, according to a company news release.
Additionally, the company cut 600 hourly employees and 2,500 contingent workers in recent months.
"It is unfortunate that after five straight years of record performance and greatly improved business fundamentals we are being forced to take these difficult actions," said Tim Solso, Cummins chairman and chief executive officer.
"While these steps are very painful, they are necessary to keep Cummins competitive through this global recession so we can emerge a stronger company when the economy and our markets recover.
"It is our expectation that these workforce reductions will align our cost structure with our projected business levels, and allow us to meet customer requirements and preserve our ability to invest for the future."
As part of the latest reductions, the company will offer a voluntary retirement packages to certain active professional employees in the United States. The remainder of the reductions will result from involuntary terminations from Cummins' operations around the world.
The company also announced it would reduce the salaries of its officers by 10 percent for 2009.
The company plans to continue to monitor production volumes at individual manufacturing plants and take whatever actions are necessary as dictated by customer demand for its products, according to the news release.
In addition to job reductions, Cummins cut costs, reduced spending in all areas and initiated temporary plant shutdowns, shortened work weeks and extended traditional holiday closing periods during the fourth quarter of 2008.