Thread regarding Cummins Inc. layoffs

Layoffs have started at the Cummins Meritor plant in Fletcher NC.

Same at DARLINGTON DEP

Rocky mount engine plant last longer than I thought it would last i used to work there left in 2009. The plant has bad management also some of the workers there bad workers that plant has always been up and down.

I would wager late Q3 or into Q4, they will start to cut to “preserve shareholder value”
Not sure how many or where. But based on past downturns, if markets don’t look better I would guess 1000-1500 employees.

They usually try to do it before years end. Or maybe even Q1, so they can write off those costs without tanking the next quarter/year.

I agree some layoffs will be in Ladson South Carolina

@ffn 100% correct

@14v7 I like your humor. Doesn't quite make sense to keep adding to the pot if they are trying to boil down the stew. Lol.

There are already pay cuts and mandatory days off being administered and enforced in the Cummins Drivetrain and Braking System division (formerly Meritior). This is not company wide for Cummins and the rest of the company is celebrating a profitable Q2. It seems to be directly impacting the faction with on highway trucking in relation to tariff increases and lack of sales as previously expected for newer trucks to adhere to higher emissions standards. They are in open opposition with the American administration's policies. They are completing disregarding anything the Trump administration is working toward and continuing with their own agenda. They are actively working against Washington D.C. and the CEO has admitted to multiple visits to stand against President Trump's "One Big Beautiful Bill."

@14v7

Crazy. Increasingly top-heavy with fewer crumbs kicked off to the sides for the rest of us.

@12yt Cant be too bad, four new Vice Presidents just announced. They wouldnt promote all the officers and VPs and let people go... right!?

Any news now that we are in Q3?

I was using copilot when I was looking for info on Cummins this came up. Interestingly, it notes timing of layoffs based on a supposed initial notice filing in Nashville, TN. Not sure if anything is accurate. Don’t take as gospel.

“Cummins, Inc. is expected to lay off a portion of its workforce in 2025, primarily due to a shift towards cleaner energy and the company's efforts to reduce debt and streamline operations. The layoffs will focus on manufacturing, corporate functions, and international operations, potentially impacting thousands of employees.

Details of the Layoffs:
Scope:
The layoffs are expected to affect approximately 1,500-2,000 employees, representing 2.5-3.5% of the company's global workforce.

Location:
The cuts will primarily target manufacturing plants (e.g., Columbus, IN; Jamestown, NY), corporate functions (administrative and R&D), and international operations in Europe and Asia-Pacific.

Rationale:
The layoffs are part of Cummins' strategy to reduce costs and improve operational efficiencies, as well as to transition towards zero-emission solutions.

Timing:
The next round of layoffs is likely to occur in Q3 2025, with the initial layoff notice filed in Nashville, TN.

Impact:
The layoffs may result in operational disruptions, particularly in tight labor markets, and potentially require mitigation strategies such as enhanced severance packages to minimize legal and reputational risks.

Additional Information:
Cummins has previously reduced its workforce by 7.81% in 2024.
The company is also facing challenges related to emission regulations and a $2 billion settlement with government officials.

Cummins' goals include reaching zero emissions by 2050 and reducing debt.”

Who published that article? Reads like an AI summary

Interesting Investment Article Regarding Cummins:

Predicting Cummins Incorporated’s Next Reduction in Force: Timing and Scale

Executive Summary

Cummins Incorporated (NYSE: CMI) is navigating a complex operational landscape driven by its Destination Zero emissions strategy, fluctuating demand in key markets, and ongoing cost optimization efforts. Based on historical patterns, recent financial disclosures, and workforce trends, the next Reduction in Force (RIF) is projected to occur in Q3 2025, impacting approximately 1,500–2,000 employees globally. This analysis synthesizes financial data, strategic announcements, and labor market signals to justify these predictions.

Key Drivers of Workforce Reductions

1. Strategic Realignment for Emissions Targets

Cummins’ Destination Zero strategy, which aims for net-zero emissions by 2050, has necessitated significant restructuring. The company has already incurred $312 million in non-cash charges for reorganizing its Accelera segment (electrified power solutions) in Q4 20246. This transition requires reallocating resources from legacy internal combustion engine (ICE) divisions to zero-emissions technologies, likely triggering workforce reductions in ICE-focused departments.

Recent Precedent: In June 2024, Cummins confirmed layoffs tied to Destination Zero, including role changes and position eliminations.
Geographic Focus: ICE manufacturing hubs in Indiana, Tennessee, and South Carolina are most vulnerable due to declining diesel engine demand.

2. Financial Performance and Cost-Cutting Imperatives

Cummins’ revenue is projected to decline by 2–5% in 2024 and remain flat in 2025. Despite record 2024 EBITDA of 18.6%, management has emphasized “streamlining operations” and “lowering selling and administrative costs”.

Labor Cost Rationalization: Employee expenses represent ~20% of total operating costs. The company reduced its workforce by 7.81% (5,900 employees) in 2024, signaling a precedent for aggressive cuts.
Voluntary Separation Programs: Offers in late 2023 and early 2024 minimized involuntary layoffs, but further cuts are likely as revenue stagnates.

3. Market Demand and Regulatory Pressures

Diesel Engine Decline: Weak demand in North American heavy-duty truck markets and China’s slowdown have reduced engine shipments.
EPA Settlement Impact: The $1.6 billion penalty for emissions violations (2023) has increased compliance costs, squeezing margins.
Predictive Analysis: Timing and Scale

Projected Timing: Q3 2025

Historical Patterns: Cummins typically announces RIFs in Q4 or Q1 to align with fiscal year-end adjustments (e.g., 2024 layoffs in November–January). However, accelerating restructuring for Destination Zero and flat 2025 revenue guidance suggest an earlier timeline.
Operational Triggers: The closure of the Charleston Technical Center (July 2025) and Accelera’s reorganization will likely necessitate workforce adjustments by mid-Q3.
Earnings Cycle: Q2 2025 earnings (reported August 2025) may reveal weaker-than-expected performance, prompting immediate cost actions.
Estimated Impact: 1,500–2,000 Employees

Scope: Cuts will focus on:
ICE manufacturing: 800–1,200 jobs in engine plants (e.g., Columbus, IN; Jamestown, NY).
Corporate functions: 300–500 roles in administrative and R&D sectors.
International operations: 400–500 positions in Europe and Asia-Pacific markets.
Rationale:
The 2024 layoffs (5,900 employees) reduced headcount by 7.81%. A similar-scale cut in 2025 (~2.5–3.5% of 69,600 employees) aligns with cost targets.
Analogous restructuring in 2008–2009 (3.5% workforce reduction) and 2023–2024 provides a template.

Risk Factors and Mitigations

1. Labor Market Conditions

Tight labor markets in the U.S. Midwest may slow rehiring post-RIF, risking operational disruptions.
Mitigation: Cummins may offer enhanced severance (up to 24 months’ pay) to minimize legal and reputational risks.

2. Technological Transition Risks

Over-reducing ICE expertise too quickly could hamper hybrid engine development.
Mitigation: Retaining key engineers through retention bonuses or reassignment to Accelera.

3. Union and Regulatory Scrutiny

UAW and other unions may challenge layoffs at unionized plants.
Mitigation: Early communication and voluntary separation packages.

Conclusion
Cummins’ next RIF will likely occur in Q3 2025, affecting 1,500–2,000 employees, primarily in ICE manufacturing and corporate roles. This aligns with the company’s strategic pivot to electrification, cost containment goals, and softening demand in traditional markets. Stakeholders should monitor Q2 2025 earnings and management commentary for confirmation of these trends.

Note: Predictions are based on publicly available data as of April 2025 and may shift with macroeconomic or regulatory changes.

Cummins will continue to lay-off US Based personal until they have all of their business in a Foreign Country, this seems to be their plan?

I'm hearing the same, rings of defense talk. Travel, backfill etc.

I’m hearing whispers about hiring pauses and possible cuts, anyone else heard anything?

How will Trumps 25% tariffs affect UK CUMMINS PLANTS Darlington DEP send engines to USA?.

5 more people have now been added as "officers" at Cummins. If my memory is correct that's 10 new appointments to newly created officer positions since the new CEO took over. Not a great look when you say you have to flatten the organizational structure and reduce headcount to meet investor expectations, but you promote people to newly created positions.

Another round just completed and the people who will remain are here with no direction from "leadership." The India team shined themselves up with Metrics and pie charts but no idea of the jobs they took and leaning on the people in the US to guide every step of the way...whoever made these decisions should come forward so we all can tell them how they just royally sc--wed Cummins customers. How disappointing.

More employees across level one are getting laid off this week.

Cummins care is basically gone now. Will transfer to India starting in August, some management was retained but around 300 people lost thier jobs across parts, technical support and digital product support.

Cant help but notice they aren't laying off hundreds from corporate

Cummins will never pass on an opportunity to lay off US workers and replace them with Hadji H1-Bs. It is their way.

Overloaded with managers DEP

Generally they execute layoffs year end to have a clean operating plan for the next year.. considering the amount of restructuring in The cc04 range, it will take time to recognize the gaps and further restructure so it functions again....
Remember they have never said they have finished the restructuring, as usual at Cummins it's often poorly executed and with little to no communication of when it's actually completed..
You might think they would have learned the damage of having long term uncertainty around these type of restructures but unfortunately not..
The company is still very director heavy with still many directors reporting to directors, legacy issues of past restructuring created this problem.

Cuts happened in CSSNA right before Thanksgiving, plus CC04 to CC03 demotions in CSSNA. I thought they said we were done with reorganization.

That's not true about it being a 'one-off.' They just gave notice to 100+ people within digital product services and other call center activities. The jobs are being sent to India. As stated in a separate post there will be cuts and or entire branches being shutdown shortly.

People laid off in CSSNA and roles downgraded from a 4 to a 3.

There are definitely ongoing layoffs. Ask me how I know

There are some parts of the org that are still in process of restructuring. They did most of the cuts but still have too many in certain pockets, but they’re one offs.