3M to cut 6,000 jobs worldwide amid weak demand for electronics

Robert Besser
30 Apr 2023, 21:11 GMT+10

Minnesota-based 3M, which makes electronic displays for smartphones and tablets, will cut some 6,000 staff globally in a second round of lay-offs this year
This week, the company said that it will instead prioritize emerging growth areas, such as climate technology and next-generation consumer electronics
In recent months, an uncertain economy, rising interest rates and ongoing high inflation are forcing major American companies to become leaner

ST. PAUL, Minnesota: In an effort to cut costs amid weak demand for consumer electronics, St. Paul, Minnesota-based 3M, which makes electronic displays for smartphones and tablets, will cut some 6,000 staff globally in a second round of lay-offs this year.

This week, the company said that it will instead prioritize emerging growth areas, such as climate technology and next-generation consumer electronics, as well as focus on high-growth businesses, including automotive electrification and home improvement.

In recent months, an uncertain economy, rising interest rates and ongoing high inflation are forcing major American companies to become leaner.

Declining demand for consumer electronics, as consumers are cutting back on discretionary spending amid concerns of recession, has hit the company's business, which fell 35 percent in the first quarter, said Chief Financial Officer Monish Patolawala.

"Relative to the first quarter of last year, consumers have shifted their spending patterns to more non-discretionary items and retailers have aggressively reduced their inventory levels," Patolawala said, as quoted by Reuters.

The company noted that its restructuring, which will affect all its operations, businesses, and locations, aims to trim its management layers.

Earlier this year, the company had announced it would cut 2,500 positions, and with the second round of job cuts, it has now reduced its total global workforce by 10 percent.