Cummins to Temporarily Slice 400 at New York Plant

December 03, 2009

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Cummins Inc. will temporarily cut its workforce by 400 people at its Jamestown Engine Plant in New York starting in January, due to a significant short-term drop in demand for heavy-duty truck engines
, according to Mark Land, spokesman.

Land says the reductions will mostly come from employees who volunteer to take temporary a leave of absence. The number of involuntary layoffs is expected to be "significantly" less, Land says.

The Jamestown plant manufactures heavy-duty diesel engines. According to Bloomberg, the lack of demand may reflect the upcoming changes in EPA's emission regulations, which take effect in January. Instead of seeing a pre-buy, Cummins may be feeling the effects of a delay, as trucking companies are hesitant to buy the more expensive new 2010 engines at this point.

The New York plant includes about 1,300 workers, 1,100 of which are in production, Bloomberg reports.

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