By Steve Gelsi

NEW YORK (Dow Jones) -- Cummins Engine Company Inc. said Tuesday it plans to cut 800 jobs by the end of February in its second round of layoffs announced since last month.

The Columbus, Ind. maker of fuel systems and controls will also reduce executive salaries by 10% this year and freeze other wages.

Combined with its previous actions taken in December, Cummins (CMI) will have reduced its professional workforce by more than 1,400 people or 10%.

Cummins will offer a second voluntary retirement package to certain professional employees in the U.S. The remainder of the reductions will result from involuntary terminations from Cummins' operations around the world.

"It is unfortunate that after five straight years of record performance and greatly improved business fundamentals we are being forced to take these difficult actions," said Tim Solso, Cummins Chairman and Chief Executive Officer. "While these steps are very painful, they are necessary to keep Cummins competitive through this global recession so we can emerge a stronger company when the economy and our markets recover."

Shares of Cummins fell 7.6% to $26.18 on Monday.

On Dec. 11, Cummins said it would cut 500 jobs and lowered its full-year outlook.

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