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Jan 14, 2009

Cummins to lay off 800 employees

Cummins Inc. announced Tuesday the company will layoff at least 800 employees worldwide by the end of February and freeze salaries for 2009.

It is unclear which facilities will receive the cuts, but Cummins officials said the layoffs will come after the company first offers a second voluntary retirement package to qualified employees in the U.S.

Cummins employs 1,100 in Memphis.

The layoffs, combined with previous cuts in December, will mean Cummins will have reduced its professional work force by more than 1,400 people, or 10 percent; its hourly work force by more than 600; and contingent workers by around 2,500.

Cummins officers will also reduce their salaries by 10 percent to help reduce the company’s costs.

In morning trading, shares of Cummins (NYSE: CMI) were down 5 cents, or .19 percent, to $26.13 per share.

Based in Columbus, Ind., Cummins manufactures fuel systems, controls and electrical power generation systems.

Source : BizJournals
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