Do you think there will be Cummins layoffs? Any chatter, news or rumors?
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Cummins will continue to lay off until its 100 percent Hadji. When haven't they laid off? If I recall correctly, there were layoffs in 2000, 2003, 2005, 2008, 2012, and 2015 when I was there. Nothing new with this company.
Since their jobs are getting off-shored they can apply for Trade Adjustment Assistance (TAA).
In Florence, Kentucky, the Accounts Receivable department's positions are being outsourced to India within a few months to the end of the year. The exact time is unknown.
Here's what I know on the Drivetrain / Components side:
They have already closed the Drivetrain (CBU) plant in Franklin KY that manufactured brake drums.
They plan to move all axle assembly operations from Forest City, NC into Fletcher, NC.
They plan to move all dressed axles operations from York, SC into Forest City, NC and sell this to DTNA.
They plan to consolidate all brake and slack adjuster assembly from Manning, SC into York, SC. It is undecided if they will exit the brake manufacturing market entirely, although this decision would be confusing with the large investment in brake manufacturing plant in Cwmbran, UK.
There is talk of consolidating Frankfort KY trailer axle manufacturing into Morganton NC trailer axle manufacturing, where they have ample floorspace. It is also plausible to consolidate Manning/York into Morganton. Unclear whether this will remain a core market or will result in a divesture.
Lindesberg, Sweden volumes will reduce by at least half, while production moves to Cameri, Italy. Saint Etienne, France may or may not be part of this equation as industrial / off highway / defense market futures are unclear. Strong investment in Laurinburg, NC. Potential to consolidate Oshkosh, WI into Laurinburg, NC if enough labor market to support.
There is a plan to close the Jurong Singapore plant. Look for strong markets in India.
Bottom line, Mother Cummins' internal SG&A remains too high to allow smaller, more nimble business agility. They are stuck in re-re-organization cycles where authorities are unclear and decision making is slow, driving people leaving or raising their hand for voluntary separation packages. Current CEO is under tremendous pressure to deliver stock price at all costs.
61 to go at DEP DARLINGTON it has hit the fan.
There was a small RIF in December within Accelera.
Is Stevie T going down the road at DARLINGTON DEP ?
It has started at DARLINGTON DEP meeting today HR ONE going in wednesday.Up to 100 to go.More news to come.
@2
I've said for years that our stock is too high and should at the very least have split when it was at 300, now it's 522 a share. Yea I see they want the stock to stay up for their retirement but also they being in upper upper management VP and over there are rules to how much said management can sell and when because of the issue with being an insider. They want to keep it up to make things on the book look better and also get more investors into the stock. Also the trucking market isn't going to get better and I think when the do the TMI evaluations they will let go the bell curve lower 10% but I think they will cut the people who are away and begging not to come into the office.
It's getting harder and harder to protect people anymore because many of the individuals who did that have retired or left and the new regime only wants that for them up at the tippy top. The problem business is getting worse and they can't afford the higher salaries (even though for the hourly their pay is lower than market standard). they will do a RIF on exempt on their TMI's, then they will look for or really have meetings with managers in charge of individuals to pic one or two who have been working from home to let go. If things still look bad they will lower hours (like during Covid) to the hourly for less than 40 hours a week, no overtime. And Accelera is probably dead this year.
If the trucking market doesn't improve, HR will be busy. Upper Upper management needs a RIF to keep the stock price high so they can retire early. Watch how they implemented the bell curve review system (oh, I mean forced ranking) to chop off the lower 10%. They need to axe the people that moved away instead of them begging for permission to keep working from home. There is still plenty of money to keep the company jets flying. If they get smart, they can stop the wasteful spending on the wart called Accelera, which is really Deccelera.