Thread regarding Cummins Inc. layoffs

@fsz
The most probable result of the Cummins electrolyzer strategic review will be a significant narrowing of the business's focus, a reduction of spending, and consolidation of manufacturing efforts, with a potential pivot towards the European market. An outright sale or shutdown is less likely at this stage given Cummins' overall financial strength and long-term hydrogen commitment.
Background
Cummins is conducting this review due to "significantly weaker prospects for demand," particularly in the US market, which has been impacted by policy shifts and regulatory uncertainty surrounding hydrogen tax incentives. The company recorded a $240 million non-cash charge in Q3 2025 related to goodwill impairment and inventory write-downs in the electrolyzer business, highlighting the current financial difficulties of the segment.
Most Possible Scenarios/Outcomes
Based on recent statements and market analysis, the most likely results include:
Streamlining Operations: The review is expected to further refine the Accelera segment's strategy, prioritizing the most viable opportunities and reducing spending in other areas.
Manufacturing Consolidation: Cummins plans to consolidate "certain manufacturing efforts" to cut costs and align production with current demand, which has "dried up" in some regions.
Increased Partnerships: A greater reliance on external partners is expected to share costs and risk.
Geographic Pivot: With the US market facing policy uncertainty, the company is expected to eye expansion or increased focus on the European market, where government support has been more forthcoming despite its own regulatory delays.
Continued Investment in Core Areas: Despite the writedowns, Cummins remains committed to its long-term "Destination Zero" strategy and will continue to invest in promising zero-emissions technologies, leveraging its strong performance in other segments to do so.
An exit from the hydrogen market entirely is not expected, as Cummins views hydrogen technology as a critical part of its long-term future and has the financial capacity to weather short-term losses. The review is intended to make the business more resilient and focused until demand conditions improve.

@OP At Dep They're planning to bring in 50 temporary staff for the beginning of next year and the process of interviewing has be penciled in for December.

@fsz
I had a friend tha tleft a few weeks ago to work at Accelera from CTC (Cummins Tech Center)I asked her what they where going to do and it was run one of the 8 battery cells they have because they have experience running one that was at CTC. Me and others have said to ourselves that we know that Accelera isn't making any money and with this administration won't even have a chance in at least 3 years. She may have walked her way into a damn layoff and don't even know it.

Accelera will likely close the electrolyzer part laying off up to 500.
Only staff for ongoing projects will stay on until project closure as well service dept.

Next week Show Time

Q3 result will determine

@dzv

Yet. There's always next week.

@dtp It doesn't look like there is going to be any RIF

Any updates?

I heard that Fuel Systems in columbus is slow and that they may or may not start to pick up this time next year (those maybe promises). And so management told the workers that they have to look to bid out to other jobs because they are closing that dept.

Anyone heard anything? This quarter is almost done. My branch is sloooowwww

We may lose some who don’t want to return to office, but the job market isn’t great IMO
Between tariffs, a struggling trucking/freight industry and accelera losses, a forced reduction is likely coming.
Many of our competitors and industry peers have already cut this year.
Update your resume

There is no need to RIF at this time. The return to office policy is going to shake up enough people to leave. Several cry babies are screaming about being forced to return.

@40c go follow tcumminsap on twitter to see a bit more about the goings on in DEP.

@fq like what negative culture things? Just curious. Thanks.

I do hope so

So any chances of company wide RIF in 2025? If yes, when-any insights

@3dp yes it's one of the reasons they moved to a 4 tier performance rating system. Another cost saving initiative to sc--w high performers and help push those people out without paying redundancy.

Is anyone else noticing harsher reviews this time around. I've heard of several people with great reviews in the past who are getting lower ratings that are a big surprise to them. Is this a sign they are trying to find excuses to push people out

There's old saying. Meet the new boss same as the old boss.

A RIF is coming. Cummins all of sudden cares about it's employees. Not happening. Polish up the resume, don't get surprised like me in Feb 2020.

I was able to get a copy of AI's transcribe of the townhall specifically on answer to the question about RIF:

Q: With the decrease in North America on highway demand expected in Q3, are we anticipating a company-wide RIF.

Answer 1: The most important thing we can do right now is manage costs through this tricky period. We're trying to manage through this in a different way. Partly because of the strength of the performance, and all of the actions we've been taking previously - to streamline the company and deliver record performance. So we are entering a very sharp decline from a position of strength. If we manage our costs well, and our cash flow well through these next few quarters... we truly hope that that's not the case. That's not what we're working on right now. But it is going to be a sharp decline, so everybody has a role to play. I know sometimes it is tempting to think, well if we just get the material cost down, or we just do something else, I can't do anything. A dollar's a dollar, and a dollar saved in the next two quarters is going to be really important. We can manage through these next couple of quarters well. In a tough environment. I mean our earnings are going down, let's not kid ourselves. But if we can do all that we can, we are going to minimize the risk of broader actions. That's not our goal. I do at the same time want to acknowledge there are tough decisions and actions have been made in those parts of the businesses that are more exposed directly to the declining production. So that's hard. Unfortunately, it is necessary to try and protect the company. But we want to do everything, we want your help in doing everything to protect. All of the employees who are here now, please if you can do a little thing, defer in one. Travel costs, doing things virtually. Anything you can do to help. I am not asking you do undermine the quality of your work, but any discretionary choice you've got is going to help the bottom line, it's going to help our incentive compensation plans, it's going to help protect all of our employees. So that our goal, as Jen said, is try and manage through this differently. We have not. I just... this is my 30th year, I'm very proud... Not quite as old as the Darlington facility, but I'm getting really close now. But through all prior cycles, unfortunately the company because we haven't been as strong going into these downturns has had to take broad action. So we're really hoping to avoid that. We're appealing to your help in doing that. I think it will be a... It will feel to me like a significant achievement for the company to do that, because we all hate those situations, but we also have to act to protect the company. So that's what I would say. I hope that's as clear as I can possibly. But we don't know what's around the corner, or how severe things would with what we see in front of us today. If we really manage well and tighten our belts, we've got a high probability of being able to manage through this differently.

Answer 2: We are not focus on an enterprise-wide RIF today so let's make sure that is clear. That's not our focus. There's a couple of reasons why and I think we... for those of you that have been here for a while, you have to understand. Many of you remember how we've managed downturns, and what we've had to do in those downturns. There's been some key things that we did differently that have set us up to be in a position of success. We made some difficult decisions around. How we wanted our workforce to look like, how we wanted our structure to look like. And we made those, they were tough to do, but they were the right decisions to make. Then second, we've had the discipline to continue to stay on path with what we've said we want to do. Those are important, and it's important, as you heard from Mark that we continue to have that discipline. So when Mark talks about cost, let's not lose the fact that this is... all of us have the ability to control this here. And so let's put ourselves in a position where we continue to stay at a position of strength... prior cycles are being characterized by hiring right until the point we're forced to reduce headcount. So what we've been trying to do that's different this time... try and call it a little but earlier out. Really restrict any hiring, because we are trying to protect all the people who are already here. So I know that also places additional demands on us. But it's in all out best interest, so I think you've really responded incredibly well. The cost control in the second quarter surprised me in a very, very positive way, so I want to finish the difficult topic, A, leaving you with clarity, B, acknowledging... wow what an amazing job. It's the cost control that shone through. Our revenues went down I mean for those of you who've been around a reasonable time, when revenues go down and our profits go up. It's never happened before. There's many factors playing into that. But you're all demonstrating that. There will be nobody prouder than me if we can get through this without more severe actions.

Nothing about UK plants in particular.
We are definitely going to see cuts in Q3/Q4. Wish I had info about who and where. Q3 is supposed to be very very bad for trucking

Any think said about any UK Plants

The outlook for second half of the year is not so positive.
They didn’t really address many questions.

Any word on Jens town hall today

@1vs Thank for saying this, Jen made comment last year / year and a half about not having direct reports being 1 person in a chain or the person only has 2 to 3 reporting to them. She should have already have gotten this taken care of. No, I think it's all about the money and even though we made money it wasn't what they forecasted and they pulled it earlier this year. Even with those changes they made, they have to still get rid of people. CTC is very top heavy and there are alot of individuals that played favors and such to keep their jobs but I think this time they won't have a choice. Something tells me that they are wanting to let go of the higher salary exempt/employees and usually that is the ones that have been there the longest and/or in higher positions.

This is going to get ugly and anyone that works in CTC who thought they where safe from a year and a half ago they aren't safe now.

Jen does not sound very postive

@1zg I believe it stands for Distribution Business Unit, Global Service & Support

What is DBU GSS?

DARLINGTON DEP

@1w0 there will be a stampede to get out in the UK if it goes to VR. It's become such a horrible place to work!

Any update for UK based operations?

@1vs
Is this company wide without considerations to business unit, geographical location, or function?

Are there further details you can provide that would help understand the wider landscape of the RIF?

Looks like the plan is to remove ranks in CCO3 and CCO2 focused on one over one or one over few reports as part of an organizational streamlining initiative. Jenn will probably mention it in townhall. CTC also is still top heavy by comp class and some folks there may be redeployed elsewhere or let go. Very few decision makers in this RIF and mostly from th top.

What about UK ?.

Just heard a friend got let go in DBU. Feels like it’s spreading. Time to update CV.

Bunch of folks over in DBU GSS got chopped today. Also some HR people. This feels like the start of a big one.

@1d5 yeah. can you please share details on the RIF that is starting today? Thank you!

@1d5. , When you say they are starting today, what location(s)? What particular BU? Specific groups?

They are starting today.