Cummins to Cut 500 White-Collar Positions

COLUMBUS, Ind. -- Cummins (CMI Quote), which makes engines and related components, said Friday that it will cut at least 500 white-collar jobs worldwide by the end of this year, citing the deterioration of the U.S. economy and key markets around the world.

The cuts, which represent about 3.5% of Cummins' white-collar work force, will come from all parts of the company and be achieved in part through offers of retirement packages to certain U.S. employees and layoffs.

Workers eligible for the voluntary retirement packages will have until Thursday to accept the offers, which include salary and the continuation of benefits for nine months following their retirements, Cummins said.

The rest of the job cuts will be involuntary. Most of the affected workers will be notified by Dec. 18 and leave the company by the end of the year. The costs associated with the job cuts will be recognized in Cummins' fourth-quarter earnings, Cummins said.

Cummins shares fell 39 cents, or 1.7%, to $22.12 in morning trading.