Cummins to shut down facilities, reduce work force

| October 10, 2012

Cummins Inc. on Tuesday, Oct. 9, announced actions to respond to the weakening global economy by cutting costs while maintaining investments in growth program with planned work week reductions, shutdowns at some manufacturing facilities and some targeted work force reductions.

“We continued to see weak economic data in a number of regions during the third quarter, increasing the level of uncertainty regarding the direction of the global economy,” said Tom Linebarger, chairman and chief executive officer of the Columbus, Ind.-based company. “As a result of the heightened uncertainty, end customers are delaying capital expenditures in a number of markets, lowering demand for our products.

Cummins it expects to reduce its work force by between 1,000 and 1,500 people by the end of the year. “Responding quickly and strategically during these challenging economic times will pave the way for Cummins to emerge stronger as a company when markets inevitably rebound,’’ said Linebarger. “Taking these actions now will allow us meet customer needs, maintain strong financial performance and allow us to capitalize on future growth opportunities.”

  • jescott418

    Here comes the next recession. Nothing is looking good.

  • 4btrucking

    The price and maintenance cost of the new equipment is killing the new truck market. It’s been stated that the fleet is older now than ever before. On top of ATA’s comment about small flleets having to trade two for one. Used trucks are selling, new trucks are not…period….

  • Marty Marsh

    The ATA is the big reason new truck prices are going up.The board member trucking companies that train drivers needs trucks that will not run people over with a rookie behind the wheel,which makes them more expensive to begin with just because of the added technology.
    Then you have the fact that these union truck builders have got to make so much regardless of what the economy is doing,you know know how that works,as long as we get ours the hell with everyone else.
    Then you have the Brokers that have screwed this industry for years.
    Last but not least,you have the goverment that makes laws just to collect more money in the name of safety.
    This is just one big joke after another,everyone has their hand out.

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