- 3M announces sweeping restructuring plan with 6,000 additional layoffs worldwide, adding to 2,500 previously announced in January 2023.
- The restructuring decision will affect all 3M business units and seeks to reduce costs and simplify supply chains.
- Declining sales in key sectors such as laptops, air purifiers and respirators, as well as falling demand due to inflation pressures and excess stock at retailers, are factors that have led to this decision.
3M announced this Tuesday, April 25, that it will continue with a broad restructuring plan that will affect 6,000 more jobs worldwide.
These layoffs will be added to the 2,500 announced in January 2023.
The manufacturer of products widely consumed around the world, such as brands Scotch, Post-it Notes y Command Stripssaid that the decision will affect all the business units in which it participates.
The idea is reduce the size of your corporate operations, simplify your supply chains and lower costs at all levels of management.
3M announced the extension of the restructuring by publishing its financial report for the first quarter of 2023.
In that report, 3M reported earnings of $976 million, or about $1.76 per share, for the quarter ended March 31. In the same period of 2022, it had added 1.3 billion dollars in earnings (2.26 dollars per share).
The financial report says the company reported $8.03 billion in sales between January and March 2023, down from $8.82 billion last year. Analysts expected even less collection (7.480 million dollars).
Los results 1Q2023 a PDF the 3M
3M and more mass layoffs
In January, in Merca2.0 we reported 3M’s decision to join the massive layoffs of technology companies. At that time there were 2,500 workers worldwide due to the sharp drop in demand, which meant less sales and less profits.
The US industrial holding company is facing declining sales at the unit focused on three key products for the brand: laptop computers, air purifiers and respirators.
In all of 2022, the numbers weren’t good for 3M because consumer spending was lower than expected amid inflation pressure.
Besides, Retailer orders fell because they, too, are having trouble selling and are therefore overstocked, halting demand for 3M.
As CEO Mike Roman said at the time, “the slower-than-expected growth in business was due to the decline in consumer-facing markets.” And he added to justify the layoffs: “As demand falls, we must adjust production and control costs.”
In the last quarter of 2022, 3M’s sales had fallen 6 percent to $8.12 billion.
Besides consumption, 3M has businesses in industrial safety, transportation and electronics, and healthcare.
Regarding healthcare, 3M was key in leading the global response to covid-19 with its products.
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