3M to cut 2,500 jobs as consumer-facing businesses face ‘rapid recession’

New York:

3M announced on Tuesday that it would cut 2,500 manufacturing jobs as the industrial giant reported lower profits and offered a gloomy outlook for 2023 based on weak demand.

The move comes as 3M, which operates in sectors as diverse as healthcare, transportation and electronics, is dealing with a pandemic-related decline in sales of face masks, or “respirators,” and a “rapid decline” in its consumer-facing business. “.

The company also expects U.S. growth to be very low in 2023, around 1%, below the global average of 1.5%, CEO Mike Roman said on a conference call with analysts.

“We expect macroeconomic challenges to persist through 2023,” Roman added in the earnings release.

“Based on what we’re seeing in our end markets, we’re reducing approximately 2,500 global manufacturing jobs — a necessary decision to align with adjusted production,” he said.

A company spokesman said there were no further details about the location or department of the job.

Net income for the fourth quarter was $541 million, compared with $1.4 billion a year earlier, while revenue fell 6.2 percent to $8.1 billion.

Mask sales in the most recent quarter were down $165 million from a year earlier due to changes in measures taken in response to Covid-19. The company’s performance was also hurt by its exit from Russia.

Executives described a mix in their markets, with vehicle electrification remaining a strong source of demand but consumer electronics slumping sharply amid weak demand for TVs, tablets and smartphones.

The company expects revenue to fall 2% to 6% this year and earnings per share to be lower than last year.

3M shares were down 5.5 percent at $115.88 in afternoon trading.

(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)