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Uncertain future for Cummins' staff

Cummins is cutting global staff by 800. File image
Cummins is cutting global staff by 800. File image

Cummins, the worldwide power generation company with a plant in east Kent, is to cut 800 workers worldwide and freeze salaries for the rest of the year.

It is not yet known whether the decision will have any impact on the Cummins Power Generation plant at Manston Park, near Ramsgate.

The business blamed the global recession for the decision.

A spokeswoman for Cummins Power Generation at Manston was unable to say whether any Kent jobs would be affected but the company would be making a statement after consulting colleagues in the United States.

In a news release by Cummins Inc, based in Columbus, Indiana, it said the cuts would be achieved by voluntary retirement, with the remainder "resulting from involuntary terminations from Cummins’ operations around the world".

Cummins Inc also said it would cut executive salaries by 10 per cent and monitor production volumes at manufacturing plans to meet customer demand.

This is the second round of cuts that has seen its workforce reduced by 1,400, or 10 per cent.

"It is unfortunate that after five straight years of record performance and greatly improved business fundamentals we are being forced to take these difficult actions," said Tim Solso, Cummins chairman and chief executive officer.

"While these steps are very painful, they are necessary to keep Cummins competitive through this global recession so we can emerge a stronger company when the economy and our markets recover.

"It is our expectation that these workforce reductions will align our cost structure with our projected business levels, and allow us to meet customer requirements and preserve our ability to invest for the future," Solso said.

Cummins serves customers in 190 countries and reported sales of more than £8billion in 2007.


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