Engine manufacturer Cummins, Inc., headquartered in Columbus, IN, announced it will lay off 2,000 or more employees by the end of the first quarter of 2020, citing an economic downturn.
“As we communicated to our employees last week, demand has deteriorated even faster than expected, and we need to adjust to reduce costs,” Cummins explained in an emailed statement to Fleet Owner. “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.”
Cummins employs about 62,000 people globally. The company did not specify where the cuts would come from.