Cummins engine firm cuts 98 jobs

An engine manufacturer in Northamptonshire is to cut 98 jobs.

Cummins, which employs 1,200 people in Daventry, said worldwide demand for its heavy duty vehicle and marine engines had fallen and costs had to be cut.

The company had tried to avoid redundancies with flexible working and lay-off periods but long-term forecasts reveal the downturn would be prolonged.

Staff are being offered voluntary redundancy. The firm said people would begin leaving by the end of November.

It said it would still try to avoid compulsory redundancies but had set out plans for new shift patterns with a reduced workforce.

This will mean most of the 98 people leaving the site over the next few weeks.

The company also said up to 1,500 jobs could be lost at factories across the world. One of the worst hit would be North America where it makes engines for large trucks and power generation.

"Weak economic data in a number of regions increased uncertainty regarding the direction of the global economy," said Tom Linebarger, chairman and chief executive officer.

"Customers are delaying capital expenditures lowering demand for our products."

The company cut 200 jobs in April 2009 because of falling demand.

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