Engine manufacturing giant, Cummins Inc. has announced that by the end of the year they will be cutting down around 1000-1500 jobs as their sales figures have not been very impressive this year, reported Jobspectrum.
CEO of Cummins, Tom Linebarger told Yahoofinance that the drastic measure was taken because of "uncertainty regarding the direction of the global economy"
Cummins Inc.'s shares had also slipped down by 3.4 percent on the New York Stock Exchange, which was one of the biggest drops since 2011,reported Yahoofinance. Sales have slipped by 35 percent which is driving the company to cut down 14 percent of their existing workforce as per Bloomberg.
The company is also expecting its earnings before interest and tax to experience a slight slump, which could stand at 13.5 percent from the earlier 14.75 to 14.25 percent, according to Jobspectrum.
Linebarger was quoted by NBC news saying "Demand in China has weakened in most end markets and we have also lowered our forecast for global mining revenues."
Cummins will also be shutting down some manufacturing plants as well as slashing the workforce, added NBC news.
The company boasts of around 44,000 employees across the globe. However, the areas in which the jobs would be slashed were not mentioned.
Job cuts are expected in plants located in New Mexico, Minnesota and North Carolina by the end of the year, said Jobspectrum.