The Indiana-based worldwide engine maker Cummins has announced that it is planning to cut about 2,000 jobs globally by the first quarter of next year.

It has more than 62,000 employees globally, including about 10,000 people in Indiana.

According to Katie Zarich, External Communications Director, Cummins, “the company must reduce costs because product demand has fallen off faster than expected.”

“We have already taken several actions in response to declining revenues. This includes reduced discretionary spending across the company, several global efforts to optimize our operations, voluntary headcount reductions, and we continue to align production with demand at our manufacturing facilities,” she said.

She also said that the efforts of the company were not enough and it has to now eliminate jobs, which is over three percent of its workforce, by the first quarter of the next year.

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“We understand this is incredibly difficult for those directly impacted and for all employees across the company. Our employees are important to the success of our company and necessary actions like this are incredibly tough and disappointing. However, by taking actions now, we can navigate this downturn and emerge stronger when markets return just as we have done in the past,” she added.