3M to cut 2,500 jobs as profits drop, says report

The multinational conglomerate 3M (MMM) notified Reuters on Tuesday that it is going to cut 2,500 manufacturing jobs. The U.S.-based industrial conglomerate has been struggling with reduction in demand for consumer and electronic items and predicted a gloomy first quarter. The demand slowdown has extended into the present quarter as consumers cut discretionary spending and rigorous industrial de-stocking, particularly in Asia, according to 3M. Chief Financial Officer, Monish Patolawala, stated that the firm has been witnessing continued decline in organic sales volume at the start of 2023. The company is also facing higher labour and energy costs. The 3M is expecting adjusted sales to be between $7.2 billion to $7.6 billion in the first quarter, a decline of 10 percent to 15 percent year-on-year, missing analysts’ expectations of $8.34 billion, as per data by Refinitiv. Citi analysts wrote in a note, “MMM to some extent had recently lowered investor/Street expectation but weak 4Q22 results and softer 2023 guidance (weak demand environment) should weigh on the stock in the near-term." The decision to cut jobs by 3M comes amid the recent layoffs by companies like Google, Microsoft, and Amazon. Satya Nadella, Chief Executive Officer of Microsoft, announced earlier this month that the tech giant is going to fire 10,000 employees. Meanwhile, Google reported that it is going to lay off as many as 12,000 employees. Reportedly, the tech just sent an email to the workers, informing them about the job cuts. Google’s CEO Sundar Pichai reportedly clarified in a town hall meeting that a proper process was followed to decide who should be fired. Other tech companies like Meta platforms, Twitter, and Salesforce have also announced layoffs. The decision has adversely impacted IT professionals in the United States, many of whom work in the United States on H-1B and L1 visas. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .