Engine manufacturer Cummins Inc. announced that they’d be laying off thousands of workers due to reduced demand.
Cummins announced on Monday that they would lay off 2,000 of the company’s 62,000 total global workforce. The layoffs are expected to start at the beginning of 2020.
The company issued a statement outlining the reasons for the layoffs:
“As we communicated to our employees last week, demand has deteriorated even faster than expected, and we need to adjust to reduce costs.We have already taken several actions in response to declining revenues. This includes reduced discretionary spending across the company, several global efforts to optimize our operations, voluntary headcount reductions, and we continue to align production with demand at our manufacturing facilities. 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. We are going to reduce our global workforce by approximately 2,000, which we anticipate completing by Q1 2020. We understand this is incredibly difficult for those directly impacted and for all employees across the company.”
Cummins 3rd quarter revenue was down 3% from 2018’s third quarter, according to the Indianapolis Star. The company points to reduced demand in the North American truck market as a reason for the reduction in revenue.
Volvo Trucks also recently announced a major layoff at their Dublin, Virginia, plant to due an anticipated decrease in demand for trucks.