Cummins is a big part of the work industry in Columbus, Indiana, with over 10,000 employees in Indiana alone. Cummins reported its third-quarter earnings, showing its profits were significantly higher than previous reports.
They believe they are approaching a slowdown and expecting lower demand for the last quarter of the year. With this belief, they are ready to take further actions to help the business. Because of this, Cummins has decided to reduce its number of employees working.
Cummins has decided to offer voluntary staff reductions to reduce their number of employees without firing workers. Eligible salaried staff will be offered voluntary retirement and separation packages in certain work areas.
Not all employees who apply for this reduction will be chosen to be let go. Cummins will decide who is chosen based on their business needs.
Reducing the number of employees working at Cummins will help lower the costs Cummins has to put their money toward. With lower employee costs, Cummins will have more money for their expected slowdown and ensure they are prepared for anything.
Cummins can not estimate how many employees will take the offer for the retirement or separation packages, but they are prepared.