The publication of the results 3M financiers surprised this Tuesday, January 24: less sales, less revenue, less profit.
As a consequence, the company said that it will cut 2,500 jobs in the product manufacturing sector, basically in the United States.
The holding company The industrial sector in the United States is facing a drop in demand for the unit focused on three key products for the brand: laptop computers, air purifiers and respirators.
According to him last fiscal year report For 3M, lower-than-expected consumer spending amid inflation pressure dragged down sales of the consumer unit, bringing in revenue of $5.31 billion in 2022, down from 2021 and less than expected.
In addition, orders from retailers fell because they too have trouble selling and are therefore overstocked, which halted demand for 3M.
As the CEO said, Mike Roman, “the slower-than-expected growth in business was due to the decline in consumer-facing markets.” And he added to justify the layoffs: “As demand falls, we must adjust production and control costs.”
Speaking only of the last quarter, 3M’s sales fell 6 percent to US$8.12 billion.
In addition to consumer, 3M has businesses in industrial safety, transportation and electronics, and healthcare.
Regarding healthcare, 3M was key in leading the global response to covid-19 with its products.
3M joins the mass layoffs
The massive layoffs do not stop and cover more market segments.
The “wave” of separations began by impacting the global technology sector and continued to cover more areas.
To the big media, the massive layoffs came with the layoffs at Twitter and other smaller technology companies, and it escalated to cover all of them and with record volumes of job cuts.
The first big tech company to lay off en masse was Meta Platforms (ex-Facebook), which laid off 11,000 people worldwide, 13% of its employees.
Another big company that lost employees along the way was Salesforce and, weeks later, the ecommerce giant: Amazon.com.
Layoffs also occurred at Google (more than 12,000 announced last week), Microsoft (another 10,000) and Spotify (6,000).
According to the technology site Layoffs.fyi, almost 195,000 technology employees have lost their jobs in the US since the beginning of 2022, not including the thousands affected by Google, Spotify and 3M.
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