Cummins Downgrades Full-Year Revenue Expected to Cut 1,500 Employees

According to Reuters, Cummins Inc. lowered its 2012 revenue forecast a few days ago and said it will cut 1,000 to 1,500 employees by the end of this year.

Cummins CEO TomLinebarger said that Cummins has lowered its revenue expectations in several markets. The largest reduction is in the North American heavy-duty truck market and the international power generation market. Demand in most of China's terminal markets has weakened, and the company also has a global mining business. Revenue expectations have been lowered.

TomLinebarger added that in order to offset the impact of the declining demand in various markets, Cummins will take a series of countermeasures, including reducing staff working hours, shutting down some manufacturing plants, and targeted layoffs.

As of the end of 2011, Cummins had a total of 43,900 employees worldwide. Cummins lowered its 2012 revenue forecast to US$17 billion due to the impact of global economic weakness on consumer buying activities, which is a decrease of 10% from previous expectations. One hundred million U.S. dollars.

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