3M Co. plans to eliminate jobs as part of a broader cost-cutting drive in response to the slowing economy, according to internal communications.
(Bloomberg) — 3M Co. plans to eliminate jobs as part of a broader cost-cutting drive in response to the slowing economy, according to internal communications.
Michale Vale, head of 3M’s safety and industrial division, disclosed the plans in a message to employees of the unit. “The business can’t avoid this tough necessity,” he said in the communication, which was reviewed by Bloomberg News.
The scope of the cuts couldn’t be immediately determined. 3M, which makes everything from dental adhesives to Post-it notes, employed about 95,000 people at the end of 2021, according to securities filings.
“3M is taking decisive actions to position the company for continued growth, while also adjusting to the challenging macroeconomic environment,” the company said in a statement, without being more specific. “As we prioritize our investments and resources, we will be adjusting on an ongoing basis the roles and responsibilities needed for future growth.”
3M has underperformed in recent years amid supply-chain snags, currency fluctuations and rising costs. The company said in July it will spin off its health-care operation, which accounted for almost a quarter of sales. Management also cut its full-year sales and profit outlook.
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3M’s safety and industrial division plans to realign and reduce its structure, streamline its portfolio and rethink business processes, as well as eliminate jobs, according to the message. The business unit is 3M’s largest by revenue and accounted for 34% of the company’s $35.4 billion in sales last year.
The company also operates other divisions, selling a variety of products in the consumer, transportation and electronics markets.
Shares of the St. Paul, Minnesota-based manufacturer were little changed Wednesday in New York. They are down 30% this year, compared with a 17% loss for the S&P 500.
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