In a second wave of job cuts this year, 3M Co. will be laying off 6,000 jobs worldwide as it attempts to control costs in the face of declining consumer electronics sales.
On Tuesday, the multinational manufacturer revealed its plans to shift its focus towards emerging growth industries, such as climate technology and next-generation consumer electronics. According to Reuters, the company intends to concentrate on high-growth sectors like vehicle electrification and home renovation.
Given the economy's uncertainty, rising interest rates, and persistent inflation, many US corporations have become more streamlined in recent months.
CNN reported that the major manufacturing business and parent company of household names like Post-It Notes and Scotch Tape has announced 3M mass layoff plans to decrease their worldwide workforce by 6,000 people. The 2,500 manufacturing positions 3M terminated in January are in addition to the fresh wave of layoffs.
Even though 3M also foresaw some layoffs for 2019 and 2020, the overall workforce has fluctuated over the last several years.
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3M Restructuring Targets To Cut Down Expenses
According to 3M's first-quarter earnings announcement, these cuts are expected to save yearly expenses by up to $900 million as part of a continuous restructuring drive. A total of 8,500 job cutbacks have now been announced by the corporation until 2023, which equates to a 10% reduction in the company's worldwide workforce, according to a report from Mint.
However, investors lacked excitement despite 3M CEO Mike Roman's claims that these 3M mass layoffs and the other steps would simplify operations and boost profitability.
The stock increased by less than 1% at 9:32 in New York, showing a muted reaction. The manufacturing firm with headquarters in Minnesota had a 12% value decrease in its shares this year, making it the Dow Jones Industrial Average's worst-performing stock.
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