3M announced 6,000 layoffs globally Tuesday as part of their recent restructuring efforts.
The owner of brands such as Post-It, Scotch Tape and Command, 3M previously cut 2,500 job in January as they prepared for a poor economic climate in 2023. The company cited concerns like foreign currency exchange rates and geopolitical tensions for the latest round, which they anticipate will save them nearly $900 million a year before taxes. (RELATED:N95 Mask Manufacturer 3M’s Sales Explode After Omicron Surge, Expects Further Profits Following CDC Shoutout)
“These actions are expected to meaningfully reduce costs and drive long-term improvement in margins and cash flow while enabling a more efficient and effective structure for driving long-term growth,” 3M said in a statement Tuesday.
Struggling with supply chain issues, 3M announced some management changes, in addition to decreasing revenue year-over-year. Reporting sales of $8 billion they’re down 9% in sales since last year. Their operating cash flow is also up 26% year-over-year.
CHICAGO, ILLINOIS – JANUARY 28: Post-it notes manufactured by 3M are offered for sale at a big box retailer on January 28, 2020 in Chicago, Illinois. 3M announced it would be cutting 1,500 jobs as well as making other changes at the company after reporting fourth-quarter earnings that plunged 27%. (Photo by Scott Olson/Getty Images)
3M grew during Covid-19 pandemic. In March 2020, 3M stock prices grew 82 points and reached a valuation that has not been seen since March 2019. Due to 3M leading the charge in mask production, “sales grew 12.7 percent in Safety and Industrial, 10.6 percent in Consumer, 5.4 percent in Health Care, and 2.3 percent in Transportation and Electronics,” according to the 2020 full-year revenue reports. 3M had $1.5 billion in mask sales in 2021 as opposed to $1.4 billion in 2020 and $600 million in 2019 before the pandemic according to the Wall Street Journal.