Blue Day for White Collars

[Jon Katz]

Large engine manufacturer Cummins Inc. proved today that not even executives and office workers are immune to the massive downsizing taking place in manufacturing worldwide.

Reuters reported Jan. 13 that Cummins is cutting its global white-collar workforce by at least 800 and plans to reduce its top 45 executives’ pay by 10% in 2010 to save money as the economic crisis deepens. The company also plans to freeze 2009 salaries for employees who aren’t officers.

While it’s hard to shed a tear for high-paid executives having their salaries cut, this move is an indication of just how serious the current recession has become. Expect more manufacturers to implement similar measures at the request of their board directors to stay afloat during these difficult times.

"While these steps are very painful, they are necessary to keep Cummins competitive through this global recession," CEO Tim Solso told Reuters.

So far, keeping Cummins competitive has resulted in 1,400 white-collar workers losing their jobs since the beginning of the fourth quarter and 400 plant workers over the past few months.

Cummins has also laid off about 700 manufacturing workers over the past few months. Altogether the company employs about 40,000 people worldwide.

Even the R&D departments are taking a hit. See this New York Times article here about Pfizer laying off 800 scientists.

[clayton1960]

Originally Posted by Jon Katz

Large engine manufacturer Cummins Inc. proved today that not even executives and office workers are immune to the massive downsizing taking place in manufacturing worldwide.

Reuters reported Jan. 13 that Cummins is cutting its global white-collar workforce by at least 800 and plans to reduce its top 45 executives’ pay by 10% in 2010 to save money as the economic crisis deepens. The company also plans to freeze 2009 salaries for employees who aren’t officers.

While it’s hard to shed a tear for high-paid executives having their salaries cut, this move is an indication of just how serious the current recession has become. Expect more manufacturers to implement similar measures at the request of their board directors to stay afloat during these difficult times.

"While these steps are very painful, they are necessary to keep Cummins competitive through this global recession," CEO Tim Solso told Reuters.

So far, keeping Cummins competitive has resulted in 1,400 white-collar workers losing their jobs since the beginning of the fourth quarter and 400 plant workers over the past few months.

Cummins has also laid off about 700 manufacturing workers over the past few months. Altogether the company employs about 40,000 people worldwide.

Even the R&D departments are taking a hit. See this New York Times article here about Pfizer laying off 800 scientists.

While most people think that white collar executives are to blame for this crisis, that simply isn't true.
There are a lot of factors that aligned for this recession to take place. Most of them are due to faulty policies of our own government, especially in the mortgage industry.
We do not like to lay off or terminate anyone in our companies. It goes to the old saying of a few to save many. That includes everyone!