3M to cut 2,500 global manufacturing jobs amid weakening demand, dip in profit
1 min read . Updated: 25 Jan 2023, 08:11 AM IST
PremiumThe move comes on the back of lower profits and a lackluster 2023 outlook based on weakening demand. 3M's net profit in the fourth quarter was $541 million compared with $1.4 billion in the year-ago period. Meanwhile, revenues fell 6.2% to $8.1 billion.
Industrial giant 3M has become the latest company to cut jobs, announcing on Tuesday that ,2500 people would be made redundant. The move comes on the back of lower profits and a lackluster 2023 outlook based on weakening demand. It is also an additional point of concern at a time when it is facing separate lawsuits related to defective earplugs and the use of ‘forever chemicals’.
The company which operates in several sectors including health care, transportation and electronics has been contending with a drop in pandemic-related sales of face masks or "respirators," and "rapid declines" in consumer-facing businesses recently. Results were also dented by its exit from Russia amid the war with Ukraine.
3M's net profit in the fourth quarter was $541 million compared with $1.4 billion in the year-ago period. Meanwhile, revenues fell 6.2% to $8.1 billion.
"We expect macroeconomic challenges to persist in 2023…Based on what we see in our end markets, we will reduce approximately 2,500 global manufacturing roles - a necessary decision to align with adjusted production volumes," said Chief Executive Mike Roman.
The industrial conglomerate is yet to divulge details - such as geographic location or sector - about the impending job cuts. The company also expects very low US growth of about one percent this year, well under the global average of 1.5%.
The company, which has been battling with higher labor and energy costs, said it would continue to adjust its manufacturing levels and maintain spending discipline until volumes bounce back.
(With inputs from agencies)