Cummins to Cut at Least 500 Jobs

Diesel engine maker Cummins Inc. said Friday it would cut “at least 500 jobs,” or 3.5% of its workforce, by the end of the year, due to “the continued deterioration in the U.S. economy and many other key markets around the world.”

The reductions will take effect Dec. 31 and charges be recorded in the fourth quarter, and the company said it will offer voluntary retirement packages to some employees.

Cummins said in October that its sales growth will be about 12% this year, lower than it previously forecast, as the U.S. and European economies weakened, Bloomberg reported.

In addition to the job cuts, Cummins said it has closed some plants temporarily, shortened work weeks and eliminated 185 positions at its Juarez, Mexico, and Darlington, United Kingdom, facilities.

Cummins had 37,800 workers worldwide at the end of last year, Bloomberg reported.