US industrial conglomerate 3M announced Tuesday it will cut 6,000 jobs as it reported lower profits, citing especially weak demand in consumer electronics.
The job cuts would be implemented globally across its operations, said 3M, whose business runs across sectors including transportation and health care.
The company continued a “relentless focus on serving customers and aggressively managed costs” in the first quarter, said Chief Executive Mike Roman.
“To strengthen 3M for the future, today we announced actions that will reduce cost at the corporate center, further simplify and strengthen our supply chain structure and streamline our go-to-market business models,” he added.
3M’s first quarter profits were $979 million, down 25 percent on lower revenues of $8.0 billion.
In an earnings presentation, 3M pointed to “significant weakness” in consumer electronics such as smartphones, tablets and televisions.
However, 3M said it expects the consumer electronics market to stabilize in the second half of 2023.
The company also cited declines in sales of face masks, from their elevated levels in the 2022 quarter of the Covid-19 pandemic.
3M said it would focus on “high-growth” segments such as automotive electrification to offset these trends, adding that it planned to invest in climate technology, sustainable packaging and other “emerging areas.”
The job cuts are expected to bring annual savings of $700 million to $900 million, 3M said.
Shares of 3M dipped 0.5 percent to $104.50 in pre-market trading.