The Republic staff reports
Cummins Inc. announced this morning that it will reduce its professional workforce worldwide by at least 500 employees, or approximately 3.5 percent, by the end of this year as a result of the continued deterioration in the U.S. economy and many other key markets around the world.
Mark Land, Cummins director of public relations, said he could not say yet how many employees in Columbus would be affected.
The employee reductions will come from all parts of the company. In order to minimize the impact of involuntary employment actions, the company has decided to offer a voluntary retirement package to certain active professional employees in the U.S.
Those employees being offered a chance to participate in the program will have until Dec. 11 to accept the compensation packages, which include salary and continuation of benefits, including health care, for nine months following their retirements.
The remainder of the reductions will be involuntary.
Employees affected by these job actions will, in most cases, be notified by Dec. 18 and the reductions are expected to take effect by Dec. 31.
The costs associated with the employee reductions will be recognized in the company's fourth quarter earnings.
"Cummins already has taken a number of actions across the company to try to bring costs in line with our reduced current demand and to meet the expected challenges of 2009," said Cummins Chairman and Chief Executive Officer Tim Solso. "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."