Engine maker Cummins will lay off 2,000 employees in January

Trucking sector recession continues to claim jobs

Engine maker Cummins Inc. (NYSE: CMI) will lay off 2,000 workers in the first quarter of 2020, the latest impact of a trucking sector recession that is claiming jobs up and down the supply chain.

Major truck makers have announced hundreds of layoffs in recent months as orders for new equipment dropped for 10 consecutive months before a slight uptick with the opening of the traditional ordering season in October.

Volvo Trucks North America on Friday became the most recent to act, confirming 700 layoffs at its assembly plant in Dublin, Virginia, on Jan. 20, 2020.

Cost cutting

“As we communicated to our employees last week, demand has deteriorated even faster than expected, and we need to adjust to reduce costs,” Cummins spokesman Jon Mills said.

The job cuts at Columbus, Indiana-based Cummins follow voluntary buyouts and other cost-saving moves. The furloughs are part of $250 million to $300 million in structural cost savings that Cummins told analysts last week were coming in response to a softening truck market.

“Our goal is not just to take out costs, but to make structural improvements to the ways we operate, to improve the overall health of the company and prepare us better for when volumes come back,” Tony Satterthwaite, Cummins’ president and chief operating officer, told analysts during a Nov. 21 investor day presentation in New York.

‘Incredibly difficult’

Reports of the job cuts began appearing last week on, a site that allows anonymous postings. More than 30 mostly negative comments had been added by Nov. 25.

“We understand this is incredibly difficult for those directly impacted and for all employees across the company,” Mills said in a statement. “Our employees are important to the success of our company and necessary actions like this are incredibly tough and disappointing.”

Cummins’ last major layoff, also about 2,000 employees, occurred in 2015. But it made many new hires in the intervening years, growing global employment from 54,000 in 2015 to 62,000 this year.

Cummins executives told analysts the company’s track record of returns to investors will continue. The company has returned nearly $12 billion to shareholders in the past decade.

“Nothing is new about this downturn,” Cummins CEO Tom Linebarger said. “We know how to manage through these. The thing we will not do during the downturn is, we will not cut our investments in the key technologies that are going to help us win in the future.”

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Alan Adler

Alan Adler is a Detroit-based award-winning journalist who worked for The Associated Press, the Detroit Free Press and most recently as Detroit Bureau Chief for He also spent two decades in domestic and international media relations and executive communications with General Motors.


  1. Not happy to see people lose their livelihood. However I got a 2014 Pete with 450 isx used with 350k. They fuel pump let go 3 months into the deal. Ceramic plunger parts throughout the motor. Cost 14 grand and 2 weeks at a dealer in Boise Idaho to replace pump and basically rebuild the bottom with no guarantee they got it all. No help from Cummmins. Then the dpf and def systems all took a shit. It was this sensor that sensor,the dozer etc etc etc. It nearly put me out of business and a lot of unnecessary debt while still making the payment and everything else and with labor rates to fix their garbage at 130 to 150 an hour. They are criminals and deserve every bad thing that happens to them.

    1. Time to get out of the business. Been thru a few headaches already with that DPF system. Luckily, my truck doesnt have DEF. Pure GARBAGE! And bringing these trucks to these USELESS DEALERS PLUS THEIR LAME JACK MECHANICS is as DEPRESSING as things can get!!

      1. LOL…lame jack mechanics? Try performing the basic maintenance that’s required on your fucking after treatment system instead of pissing into a jug. Yes please get out of the business. Because the less stupid motherfuckers like you make our jog a lot easier.

        1. Yeah jackasses with attitudes. Every mechanic seems to think they are on some of reality tv show. They take 4 hrs to diagnose a problem that they probably have seen a thousand times. Charge 5 to 6 hundred bucks just to tell you what’s wrong and now the real bill starts. Scum bags and criminals and then they make the wrong diagnosis and 600 miles down the road your out of their shop and into another one starting the game all over. On top of that I’ve never seen so many filthy shops and filthy mechanics that get grease and crap all over truck. I could go on and on. Yeah jack ass crap mechanics.

          1. Yeah my mechanic leaves finger prints on alotta stuff but he’s good and cheap and i just follow him with my “Tub O Towels” and wipe off the smudges and pay him and then carry my’azz back to work…lmao. Love my 1996 W900L 3406e.

    2. Exactly I have a 2012 Peterbilt 389 with a pile of shit Cummins isx 15 600hp and 2050torque gets out pulled everyday by a 500hp Paccar same gears same trans same tires. My 2012 has 554,000 and already has had a inframe due to the ceramic plungers. I’m about to put a real motor in it a c-15 cat. These new motors Cummins make is a joke I hope they restructure or just get out of heavy truck engines.

  2. Instead of letting 2k ppl go how bout the CEO and all of high branches take a pay cut!!! But nooooooo they got to keep making millions in bonuses salary incentives all that while the ones at the bottom have to loose their jobs cause of Greed..Lord help us.

      1. Sense Obama has helped these companies screw you. Get pissed at the right people, like the big money makers who DON’T CARE ABOUT EMPLOYEES. They only care about their pockets

  3. Bought a new Holset Turbo Charger $5,733.24 11/26/2019 replaced it on to the truck 12/01/2019 defective blowing oil out on the high side.Brought the turbo back to cummin’s under warranty they refused to take the turbo back saying its a new policy “NO Returns” are you kidding me $5733.24 for there technologies.Beware of this outfit they are going under i can feel it.See you in court Cummins.were i live the Liberal judges don’t take kindly to ripping off small Business.