3M plans to cut 2,500 jobs globally as outlook signals more turbulence

3M shares dropped as much as 4.7% before the start of regular trading in New York

layoffs, job loss, lay-offs, unemployment
Fourth-quarter adjusted earnings per share and the adjusted operating margin for the period also missed analysts’ estimates
Ryan Beene | Bloomberg
2 min read Last Updated : Jan 24 2023 | 7:55 PM IST
3M Co. said it plans to cut about 2,500 manufacturing jobs, citing persistent economic hurdles, and forecast profit for this year that fell short of Wall Street estimates. The stock tumbled.
 
“We expect macroeconomic challenges to persist in 2023,” Chief Executive Officer Mike Roman said in a statement Tuesday. The planned job cuts are “a necessary decision to align with adjusted production volumes,” he said.
 
The maker of Post-it notes, surgical supplies and touch-screen displays sees full-year adjusted earnings for 2023 in a range of $8.50 to $9.00 per share, excluding special items. That’s below the average analyst estimate. Organic sales could fall as much as 3%,   the industrial and consumer-goods conglomerate said.
 
3M shares dropped as much as 4.7% before the start of regular trading in New York. 
 
The news follows a tumultuous year for the St. Paul, Minnesota-based manufacturing giant and shows there’s more turbulence on the horizon. 3M has battled with softening demand in key segments as well as mounting risks tied to litigation over allegedly defective combat ear plugs. It also faces liabilities over contamination caused by so-called forever chemicals, which the company plans to stop producing by the end of 2025.
 
The company twice cut its full-year 2022 sales and profit outlook, most recently in October, as a strong US dollar and shaky demand added to pressure from inflation and supply chain turmoil. 3M had about 95,000 employees at the end of 2021, according to securities filings. 
 
Fourth-quarter adjusted earnings per share and the adjusted operating margin for the period also missed analysts’ estimates.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :layoff3M Indiajob lossjob cutsmanufacturing jobs

Next Story