Cummins slashes CEO pay, cuts employee salaries on coronavirus hit

April 3 (Reuters) - U.S. engine maker Cummins Inc CMI.N said on Friday it would cut salaries of all employees in the United States as well as its chief executive to reduce costs as the impact of the coronavirus pandemic weighs on the industry.

Employees working hours will be reduced and their salary cut between 10% and 25%, while Chief Executive Tom Linebarger's would be halved, the company said.

"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," Linebarger said.

The company added that it planned to take similar actions outside the United States based on local regulations.

The spread of the coronavirus has shut down production and stalled demand for new vehicles across the auto industry, sending automakers and their suppliers scrambling to cover costs and shore up liquidity.

General Electric Co GE.N has said it would furlough about half its workers in its U.S. engine assembly and component manufacturing operations, while Boeing Co BA.N also outlined a plan of voluntary layoffs for employees on Thursday.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shailesh Kuber)

((; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.