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BOSTON, Jan 13 (Reuters) - U.S. manufacturer Cummins Inc (CMI.N) said on Tuesday that it would cut its global white-collar workforce by at least 800 and reduce its top executives’ pay by 10 percent next year to save money during the deepening recession.
The maker of engines for large trucks and power generators also said it would freeze 2009 salaries for employees who are not officers. The 10 percent pay cut applies to its top 45 officers.
“While these steps are very painful, they are necessary to keep Cummins competitive through this global recession,” said Chief Executive Tim Solso.
Cummins shares were down 10 cents at $26.08 in morning New York Stock Exchange trade.
The company will offer retirement packages to some employees and lay off additional workers to reach its target.
With this the latest round of cuts, the Columbus, Indiana-based company had cut its white-collar workforce by about 1,400 people, or 10 percent of its office staff, since the start of the fourth quarter, a spokesman said.
Cummins has also laid off about 700 manufacturing workers over the past few months. Altogether the company employs about 40,000 people worldwide.
Over the past year, Cummins shares have fallen about 47 percent, roughly in line with the 45 percent slide of the Dow Jones U.S Commercial Vehicles and Trucks Index .DJUSHR. (Reporting by Scott Malone, editing by Gerald E. McCormick, Derek Caney and Lisa Von Ahn)