US conglomerate 3M announced on Tuesday that it will cut 6,000 jobs after reporting lower profits in its first quarter. The company, which operates in a variety of sectors such as transportation and health care, cited weak demand in consumer electronics as the main reason behind the job cuts. The cuts will be implemented globally across 3M's operations.
In response to the challenging environment, 3M's CEO, Mike Roman, stated that the company will focus on serving its customers and reducing costs. 3M is expecting the consumer electronics market to stabilize in the second half of 2023, and plans to offset the declines in sales by investing in high-growth segments such as automotive electrification, climate technology, and sustainable packaging. The company also aims to streamline its go-to-market business models and strengthen its supply chain structure.
The job cuts are projected to generate annual savings of $700 million to $900 million. While 3M's first-quarter profits were $979 million, down 25% on lower revenues of $8.0 billion, the company remains optimistic about its future. Despite the initial dip in shares of 3M, the company's plans to invest in high-growth areas and reduce costs could position it for success in the long term.
