Cummins temporarily cuts employee salaries, working hours in response to COVID-19 impact

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COLUMBUS, Ind. – Cummins Inc., best known for manufacturing diesel-truck engines, has announced several temporary salary cuts and working-hours reductions for employees in response to the impact of COVID-19.

“The impact from the pandemic on the global economy has been sudden and is growing, and it is imperative for us to respond quickly to maintain our strong financial position,” said Tom Linebarger, chairman and CEO of Cummins Inc.

In response to lower demand and customer shutdowns in several countries, the company is taking the following temporary actions to lower costs:

  • A reduction of 50% in the salary of the CEO;
  • A reduction of 25% in director compensation; and
  • A reduction in salary for all other employees in the United States of between 10% and 25% and a reduction in working hours

The company will take similar actions outside the United States based on local regulations and collective bargaining obligations. These reductions in pay are intended to be a temporary measure; the company will continue to monitor business conditions closely and reassess the program at the end of the second quarter.

“These are difficult but necessary actions and I know they will have a real impact on the lives of our employees and their families,” added Linebarger. “I appreciate their understanding and support as we work through these challenging times together. I want to thank our employees for their continued commitment to ensuring our customers receive the products and service they need to provide essential support to the global economy.”


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