Cummins Inc has announced significant layoffs, impacting thousands of employees worldwide. The company cited a decline in demand for diesel engines and a shift towards more electric vehicles as reasons for the layoffs.
The layoffs are expected to affect around 2,600 employees, with the majority being based in the United States.
Cummins Layoffs
Cummins Inc. has laid off a significant number of employees over the years due to economic downturns. In 2008, the company reduced its professional workforce by 3.5% or approximately 500 employees by the end of the year.
The layoffs were a result of the company's efforts to minimize the impact of involuntary employment actions. To achieve this, Cummins offered a voluntary retirement package to certain active professional employees in the United States.
The company has continued to face economic challenges, leading to further layoffs in 2019. Cummins laid off 2,000 salaried employees following a downturn in the trucking, construction, and power generation markets.
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The layoffs were necessary due to the sharp decline in demand for engines in various markets. Cummins expects 2019 revenues to decline by about 2%, citing a decrease in demand for engines in North America and globally.
Cummins has a global workforce of around 62,000 employees. The company has taken various cost-cutting measures, including reducing discretionary spending and cutting back on hiring.
Layoffs Details
Cummins Inc. laid off 2,000 salaried employees in the first quarter of 2020 due to softening demand in the trucking industry.
The company attributed the decision to a downturn in the trucking, construction, and power generation markets.
Cummins expects to reduce costs by up to $300 million in 2020.
The layoffs will occur by the first quarter of 2020, according to company spokesman Jon Mills.
In 2008, Cummins reduced its professional workforce by 3.5% or approximately 500 employees.
Cummins has a global workforce of 62,600 employees.
The company has already taken several actions in response to declining revenues, including reduced discretionary spending and voluntary headcount reductions.
Cummins is the largest manufacturer of Class 8 truck engines, holding a 38.1% market share in 2018.
The company's revenue dropped by 3% in the third quarter of 2019, and it expects first-quarter revenue to dip 2% due to decreased demand for new diesel engines.
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Frequently Asked Questions
Is the Cummins plant closing down?
Yes, the Cummins plant in Memphis is closing down. The company will consolidate operations in Charleston, South Carolina, by the end of the third quarter.
What is the future of Cummins?
Cummins is innovating towards a decarbonized future with its HELM platform, a flexible, fuel-agnostic engine that's set to transform the industry. This marks a significant step towards a more sustainable transportation sector.
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