3M Will Cut 2,500 Jobs Globally
Demand for some key 3M Co. products has been declining over the last year. With fewer consumers buying respirators and masks, the Maplewood-based manufacturing giant on Tuesday announced it will cut 2,500 global manufacturing jobs.
In a Tuesday full-year 2022 earnings report, 3M chairman and CEO Mike Roman said “rapid declines in consumer-facing markets” led to slower-than-expected growth in 2022. This trend accelerated in December alongside “significant slowing in China due to Covid-related disruptions,” Roman said.
“As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels,” Roman said, later adding the year has been marked by “inflation, global conflicts, and economic softening.”
The report did not specify where jobs would be lost, but Roman said the cuts are “a necessary decision to align with adjusted production volumes.” At the end of 2021, 3M said it employed about 95,000 people around the world. That means the latest round of job cuts would amount to just under 3% of the company’s total workforce.
In the new year, 3M anticipates sales will drop 2% to 6% with adjusted earnings dropping 10%. This includes a 2% loss from a decline in disposable respirator decline and 3M’s exit from Russia. The company reported $34.2 billion in revenue in 2022, a decline of 3% from 2021. Meanwhile, 3M reported net income of $5.7 billion in 2022, down from $5.9 billion in the prior year.
The CEO said the company has also had some successes within the year, noting 3M’s pledge to stop the manufacturing of all per- and polyfluoroalkyl substances — also known as PFAS or “forever chemicals”— by the end of 2025. The company also continued working toward a resolution for Combat Arms litigation. An investment into managing the company’s portfolio included diversifying its food safety business, while the company also planned a spin-off of its Health Care business.