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Cummins Releases Temp Workers

Company Cites $1B Less In Expected Revenue As Reason

October 18, 2012
By Dennis Phillips (dphillips@post-journal.com) , The Post-Journal

BUSTI - Temporary workers have been released at the Cummins Inc. Jamestown Engine Plant.

Jon Mills, Cummins external communications director, said 56 members of the plant's temporary workforce were released Tuesday and Wednesday.

''While Jamestown is experiencing less of a decline in demand than other Cummins operations, we still unfortunately had to make adjustments. To that end, we've released the remainder of the plant's temporary workforce,'' Mills said.

"We continue to monitor the situation closely and are taking measures to minimize the impact on our employees, while ensuring that we are positioned well for long-term success," added Mills.

After lowering its full-year revenue expectations by an estimated $1 billion, Cummins officials announced last week plans to reduce its worldwide workforce by 1,000 to 1,500 people by the end of 2012. The company had 46,200 employees worldwide in early September. The company had an estimated $18 billion in sales in 2011 and had estimated another $18 billion in sales for 2012. However, Cummins officials have reduced their sales expectations to $17 billion for this year.

''As Cummins has announced previously, weakening in the global markets is having a negative impact on all our business units,'' Mills said. ''To respond to the continued decrease in demand, Cummins has initiated cost-savings programs and workforce reductions across the enterprise.''

On Wednesday, it was reported a union president for Cummins said no layoffs are planned among the research, technical and support employees at Indiana operation sites. A union leader for production workers for Cummins' Indiana plants has said he expected some of those workers to be affected.

The company has some 7,700 workers in southern Indiana, including the Columbus headquarters and factories in Columbus and Seymour.

 
 

 

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