Cummins conducting layoffs to focus on “operational efficiencies”

Cummins Inc. is going through a round of layoffs in an attempt to improve business and operational efficiency, company representatives say. 

Cummins has not specified how many employees have been laid off, but internal messaging reveals that the company is cutting positions with a goal of reducing middle management and simplifying business operations, reported Indy Star.

“As part of this evolution, some of our employees may experience reporting, responsibility or role changes as well as position eliminations,” spokesperson Lauren Daniel said in an email. The company is reportedly “in the process of improving our business and operational efficiencies to better service our customers, improve our work environment and ensure we are best positioned for success now and in the future.”

While demand for commercial trucks has slowed since the years of the pandemic, Cummins claims that the job cuts are more directly related to its goal of reaching zero emissions by 2050. Cummins reached a $2 billion settlement with government officials in late 2023 after allegedly installed defeat devices on 630,000 model year 2013 to 2019 RAM 2500 and 3500 pickup truck engines. The company also allegedly installed undisclosed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 pickup truck engines.”

Despite the settlement, the company has stated that “the company has seen no evidence that anyone acted in bad faith and does not admit wrongdoing.” The company has not attributed the layoffs to the massive financial settlement, but has cited debt reduction as a goal.