Thread regarding Cummins Inc. layoffs

Severance package

So now its official layoffs are going to happen soon in q4 . Hence, had some questions regarding Cummins severance package policy. I can't quite remember what the severance policy was last time around. Is the below correct?-

  • Tenure Less than 3 years- 3 months severance compensation.
  • Tenure between 3 to 8 years- 3 months min +1 month of each extra year. So, for example, 5 yrs worked = 5 months salary in compensation
  • More than 8 years- 8 months severance compensation

Is the above correct ? Note- The numbers above are based on what I can recall from 2015 layoffs but these numbers may be incorrect.

Another question below-

  • Is the payout done monthly or as a 1 time lump sum?
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Post ID: @OP+128gHSQf

17 replies (most recent on top)

2000 is for the economic downturn but there are additional cuts coming from the reorganization

These may drag on for awhile

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Post ID: @1kypm+128gHSQf

Both exempt and non exempt are eligible for a severance package if your tenure is over 3 years.

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Post ID: @1kbpy+128gHSQf

Do non exempt employees receive severance or is this just exempt employee?

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Post ID: @1jwyk+128gHSQf

Thanks!

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Post ID: @15fxg+128gHSQf

It is very depressing but also weirdly interesting that this company pays their senior and most valuable people to leave. I would suspect that less senior and less valuable management benefits.

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Post ID: @Wmrh+128gHSQf

Reckon the end of Q1 timing was to cover for employees in Europe, employment law means the company can't terminate people within 90 days. Different in the U.S

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Post ID: @hktx+128gHSQf

You can google severance pay calculator and get an idea what is fair. For me it says in the 8-11yr category in my role I would be owed 12 months severance. If I get put in that position and they offer less, I will absolutely take them to court to get a maximum payout. Plan ahead for these scenarios, know your rights and you won’t be caught off guard.

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Post ID: @fkjt+128gHSQf

I got my bonus check in 2016 after I was let go in 2015, which I appreciated, but that was financially ignorant. Why not forego bonuses for the company and avoid a mass layoff...which by the way, you had a mass hiring the next year? Asinine.

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Post ID: @evob+128gHSQf

No you don’t

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Post ID: @dwpc+128gHSQf

If your laid off before the end of the year, do you still get your bonus check from 2019 next year?

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Post ID: @dljz+128gHSQf

I got 6 months in 2015 for 10 years of service. Should have countered though. Took me a long time to find a comparable job.

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Post ID: @cdyb+128gHSQf

Yeah that sounds right. In 2012 I had 12 years and got 6 months. My paycheck came as normal that whole time. They did buy out the remaining vacation time too. In 2008 they did a round right before Christmas like this based on 2007 rating and ranking and then another round in January of 2009 based off 2008 rating and ranking.

They will probably be hiring again within 6 months if the past is any indication unless there is a big recession like 08/09.

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Post ID: @5dpx+128gHSQf

Your correct about the way they worded the internal memos that it would happen before the first quarter (Q1). But if they do this like that, then we have all of next year that we may see a few more layoffs because they said that next year would be bad and they can easily say we need to cut another 2,000 in May 2020.

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Post ID: @4xsp+128gHSQf

The internal communication stated layoffs would be completed before Q1. So they should be done before Christmas.

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Post ID: @3jvg+128gHSQf

Hopefully it happens quickly. The local newspaper reported by the end of Q1, 2020. I hope it doesn't take that long. When this announcement is made that is all people think and talk about at work. It hurts productivity when you worry if you will be the one picked to go. Praying that they tell all the persons who will be let go soon so the worrying can stop and people will stop worrying about the cuts. At least the company is generous about providing a severance package, it gives employees a little time to look for new opportunities without having to worry about how to support themselves or attempt to get unemployment. There are other jobs, it is however hurtful to your pride when you are let go.

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Post ID: @3phg+128gHSQf

I'm a salary grade 10 and took the voluntary retirement offer. I'll get 9 months severance with 20 years service. Employees have the option to take severance in a lump sum but if you want to get Active benefits during the severance period you have to take it using your regular payroll cycle which is bi-monthly for Exempt employees. Because of this most people don't take a lump sum which is also taxed at a higher rate I believe. We have roughly 27,000 employees in the US. Assuming the 2000 job cuts are split evenly between the US and globally it's less than 5% but hat's on top of the 400+ who took the early retirement offer.

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Post ID: @1bdw+128gHSQf

That sounds about right. They nuked me in December 15 after 16 years and I got 8 months severance. I think the max is 9 and want to say that the early out retirees got a full 12. Your pay comes in twice a month just like it would if you still worked there until it expires. The only thing that I remember that was lump sum was the remaining vacation time payout.

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Post ID: @ozv+128gHSQf

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