http://abcnews.go.com/Business/wireStory/cummins-cut-2000-jobs-due-weak-demand-engines-34761419
Cummins plans to slash up to 2,000 jobs, almost 4 percent of its
workforce, due to weaker demand for its engines. The company said it
expects the weakness to continue and cut its revenue outlook for the
year.
Shares of the Columbus, Indiana, company fell to its lowest point in nearly three years.
The job cuts, which are expected to be completed mostly by the end of
the year, represent about 4 percent of the company’s total worldwide
workforce of more than 54,600. The cuts will save Cummins between $160
million to $200 million a year, it said.
Cummins CEO Tom Linebarger said demand in Brazil and China
has been low and shows “no signs of improvement in the near-term.”
Demand for its generators and engines used in farming and construction
equipment has been low and “worsening,” he said.
“Given the uncertainty in the global economy, we expect challenging
conditions to persist for some time,” Linebarger said in a printed
statement.
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