Cummins to Cut 800 Jobs Worldwide; Freeze Salaries

Diesel engine maker Cummins Inc. said Tuesday it will cut at least 800 jobs worldwide by the end of February and will freeze salaries for the year in response to deteriorating economic conditions.

The company said it will offer a second voluntary retirement package to some employees in the United States, “while the remainder of the reductions will result from involuntary terminations from Cummins’ operations around the world.”

Cummins also will reduce its officers’ salaries by 10% this year and “will continue to monitor production volumes at individual manufacturing plants and take whatever actions are necessary as dictated by customer demand for its products.”

The move is Cummins’ second round of reductions in response to the worsening global economic crisis.