(Reuters) – 3M said on Tuesday it was cutting around 6,000 jobs worldwide, as the U.S. industrial conglomerate said it wanted to focus on high-growth businesses including automotive electrification and home improvement.
“We announced measures that will reduce costs at the core of the business, simplify and strengthen our supply chain structure, and streamline our go-to-market business models, which will improve margins and cash flow,” said 3M chief executive Mike Roman.
This job cut comes on top of the layoff of 2,500 people announced earlier this year by 3M, which had about 92,000 employees as of December 31, 2022, according to its annual report.
With these measures, the group says it anticipates annual pre-tax savings of 700 to 900 million dollars.
3M struggled with declining demand for consumer electronics as rampant inflation prompted buyers to cut spending on unnecessary products.
The group, which also manufactures “Scotch” adhesive tape and “Post-it notes”, had already implemented cost-cutting measures which enabled it to exceed profit and turnover expectations for the first trimester.
The group’s share rose 0.65% in early trading on the New York Stock Exchange.
(Report Kannaki Deka in Bangalore; Kate Entringer, edited by Blandine Hénault)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
