Cummins Layoffs 2019: 2,000 Workers To Be Laid Off As Engine Demand Drops

Columbus-based engine company Cummins Inc. (CMI) is reportedly laying off 2,000 salaried employees following a downturn in the trucking, construction, and power generation markets.

The news of the layoffs was confirmed by company spokesman Jon Mills on Monday, but no information on which locations would be affected was provided, the Indy Star reported. The layoffs are expected to occur by the first quarter of 2020, according to Mills.

"Unfortunately, we must do more to reduce costs because the downturn is happening at a sharper pace than we experienced in the previous two cycles," Mills said in an email to the news outlet. "We understand this is incredibly difficult for those directly impacted and for all employees across the company."

Following a drop in revenue of 3% for Q3, Cummins expects 2019 revenues to decline by about 2%, which it reportedly cited was due to a decrease in demand for engines in the North American truck and oil and gas markets as well as global power generation, China’s construction and medium- and heavy-duty truck industries and India.

Last week, Cummins said it was undergoing a cost-cutting measure of $250 to $300 million companywide. The cuts are expected to include company discretionary spending, voluntary worker cuts, and an aligning of production with engine demand.

"Demand has deteriorated even faster than expected, and we need to adjust to reduce costs," Mills told the Indy Star. "We have already taken several actions in response to declining revenues."

Cummins employees about 62,000 workers globally.

Shares of Cummins stock were up 0.5% as of 11:00 a.m. EST on Tuesday.