Cummins Cutting 400 Jobs at Truck Engine Plant

Cummins Inc. plans to temporarily cut about 400 jobs at a plant in western New York state starting in January because of expected lower demand for the heavy-duty engines produced there, Bloomberg reported.

A “substantial” number of the reductions at the Jamestown Engine Plant will be voluntary temporary leaves, in which workers will retain health-care benefits, Mark Land, a company spokesman, said, Bloomberg reported.

The plant is currently building about 500 heavy-duty engines a day, which is close to maximum capacity, Land said, but that is expected to drop off significantly through the first quarter of 2010. The surge in orders for current model engines is likely a move by truck buyers to avoid more expensive engines with new emission-controlling technology that will be required after Dec. 31.

The plant employs about 1,300 workers, with about 1,100 of those in production. Improvement in demand for the plant’s products is expected to be gradual and it may be four to six months before the company brings the workers back, Land said, Bloomberg reported.