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Jobs will be cut at 3M as part of a cost-cutting initiative

By Nagasunder in US business news, posted September 2, 2022

3M intends to lay off workers as part of a larger cost-cutting drive in response to the slowing economy.

Michale Vale, the head of 3M's safety and industrial division, revealed the plans in a message to employees.

He said: "The business cannot avoid this difficult requirement."

The extent of the cuts could not be determined immediately.

According to securities filings, 3M, which manufactures everything from dental adhesives to post-it notes, employed approximately 95,000 people at the end of 2021.

A statement from 3M said: “3M is taking decisive actions to position the company for continued growth, while also adjusting to the challenging macroeconomic environment.

“As we prioritize our investments and resources, we will be adjusting on an ongoing basis the roles and responsibilities needed for future growth."

In recent years, 3M has underperformed due to supply-chain issues, currency fluctuations, and rising costs.

In July, the company announced that it would spin off its healthcare division, which accounted for nearly a quarter of sales. Management also reduced its full-year sales and profit forecast.

3M’s safety and industrial division plan to realign and reduce its structure, streamline its portfolio and rethink business processes, as well as eliminate jobs, according to the message.

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The business unit is 3M's largest in terms of revenue, accounting for 34 percent of the company's $35.4 billion in sales last year.

Other divisions of the company sell a variety of products in the consumer, transportation, and electronics markets.

Source: Livemint

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