HomeEconomyThe 3M group will cut 6,000 jobs worldwide

The 3M group will cut 6,000 jobs worldwide

The American chemical group known for being the origin of Scotch whiskey or even the Post-it will cut 6,000 jobs worldwide, justifying its desire to focus on high-growth activities.

At the end of 2022, the US conglomerate 3M had 92,000 employees to its credit… but that shouldn’t last. After already announcing the layoff of 2,500 people at the beginning of the year, the 3M group foresees a new wave of cuts of around 6,000 jobs worldwide. The announcement was broadcast as part of a press release published on Tuesday to present its quarterly results.

“We are announcing steps that will reduce costs at the core of the business, simplify and strengthen our supply chain structure, and streamline our go-to-market business models, all of which will improve margins and cash flow,” said Mike Roman, CEO of 3M. The group wants to focus on its high-growth businesses, including automotive electrification and home improvement.

Restructuring to preserve cash

With these measures, the group says it anticipates annual pre-tax savings of $700 million to $900 million. 3M struggled with declining demand for consumer electronics as rampant inflation led shoppers to cut spending on unnecessary products.

The group, which also manufactures the adhesive “Scotch” and the “Post-it”, avait déjà mis en place des mesures de réduction des coûts qui ont lui ont permission to dépasser les attentes de bénéfices et de chiffre d’affaires pour le first trimester. The group’s share rose 0.65% in early trading on the New York Stock Exchange.

Author: MUAC with AFP
Source: BFM TV

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