3M to cut 2,500 jobs, demand and profits suffer in the 4th quarter
(Reuters) – The 3M Group said on Tuesday it would cut 2,500 manufacturing jobs after reporting a drop in quarterly profit and weaker demand.
Weaker-than-expected consumer spending amid inflation impacted sales at 3M’s consumer division, which sells products such as laptops, air purifiers and ventilators, and generated revenue of business of approximately 5.30 billion dollars (4.87 billion euros) in 2022.
Reduced activity at US retailers facing high inventory levels also dampened demand.
“The slower-than-expected growth is due to rapid declines in consumer markets,” said 3M chief executive Mike Roman.
“As demand weakened, we adjusted manufacturing output and controlled costs, which allowed us to improve inventory levels,” he added.
The group thus reported a profit of 0.98 dollars per share for its fourth quarter, against 2.31 dollars a year earlier, a result also weighed down by a charge linked to the abandonment of the production of perfluoroalkyl substances (PFAS).
(Report Aishwarya Nair in Bangalore, French version Diana Mandiá)
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