Cummins plans to cut 1,500 jobs by year-end Indiana-based engine maker Cummins Inc. said Tuesday it plans to cut as many as 1,500 jobs by the end of the year. Cummins CEO Tom Linebarger said in a statement Tuesday that the company made the decision because of "uncertainty regarding the direction of the global economy." He didn't say where the job cuts would be made. The company also lowered its earnings guidance for the second time this year. Cummins now expects full-year sales of $17 billion, down $1 billion from its prior view. "Demand in China has weakened in most end markets and we have also lowered our forecast for global mining revenues," Linebarger said. He added that Cummins will take a number of actions to offset the fall in demand, including planned work-week reductions, shutdowns at some manufacturing plants, and targeted workforce reductions. "Investors expected a guidance cut from Cummins this quarter but this does look to be a bit more than expected," William Blair & Company analyst Lawrence De Maria said. Cummins employs about 44,000 people worldwide and expects to cut between 1,000 and 1,500 positions by year-end. The company has factories in Indiana, Minnesota, New Mexico and North Carolina, and several overseas. Last month, the company said it had instituted a global hiring freeze after a recent drop in sales in markets in North America, China and Brazil. The company says it earned $1.85 billion on sales of $18 billion in 2011. Shares fell about 4 percent in after-hours trading on the New York Stock Exchange.