Columbus-based Cummins Inc. (NYSE: CMI) has confirmed to Inside INdiana Business its plans to layoff approximately 2,000 salaried workers from its global workforce of about 62,000.
The powertrain manufacturer said Monday afternoon that demand has deteriorated faster than expected and it needs to reduce costs.
Cummins did not specify how many, if any, Indiana jobs would be affected by the move. However, the company said the layoffs involve exempt employees, meaning salaried positions and not union jobs.
The cuts are expected to take place during the first quarter of 2020.
You can read the full statement from Cummins here:
“As we communicated to our employees last week, demand has deteriorated even faster than expected, and we need to adjust to reduce costs.
We have already taken several actions in response to declining revenues. This includes reduced discretionary spending across the company, several global efforts to optimize our operations, voluntary headcount reductions, and we continue to align production with demand at our manufacturing facilities.
Unfortunately, we must do more to reduce costs because the downturn is happening at a sharper pace than we experienced in the previous two cycles.
We are going to reduce our global workforce by approximately 2,000, which we anticipate completing by Q1 2020. We understand this is incredibly difficult for those directly impacted and for all employees across the company.”