3M to lay off about 2,500 employees due to 2023 economic outlook
MAPLEWOOD, Minn. – One of Minnesota's largest employers announced that they intend to cut about 2,500 jobs in the near future.
The news comes following the announcement of fourth-quarter and full-year results, and with a look ahead to the 2023 financial outlook. Shares fell 4.7% before the market open.
"We posted organic growth of 0.4 percent -- versus our expectation of 1 to 3 percent -- adjusted margins of 19.1 percent, and adjusted earnings of $2.28 per share. The slower-than-expected growth was due to rapid declines in consumer-facing markets," 3M chairman and CEO Mike Roman said. "Our focus is executing the actions we initiated in 2022 and delivering the best performance for customers and shareholders. Based on what we see in our end markets, we will reduce approximately 2,500 global manufacturing roles – a necessary decision to align with adjusted production volumes."
3M Co. also reported fourth-quarter earnings of $541 million, or 98 cents per share. Its adjusted profit was $2.28 per share. That's below the $2.34 per share that analysts polled by Zacks Investment Research predicted.
3M's full-year expectations for 2023 were reported to include a sales growth adjustment of -6% to -2%.
Last month, 3M announced that the company would stop the manufacturing and use of per- and polyfluoroalkyl substances -- also known as "forever chemicals" -- by the end of 2025. That development was also mentioned in the company's year-end report. The so-called forever chemicals are used in nonstick frying pans, water-repellent sports gear, stain-resistant rugs, cosmetics and countless other consumer products.
Late last year, Bloomberg reported 3M announced future layoffs in an internal memo. The Maplewood-based company, at the time of the news, told WCCO it was "adjusting" to the slowing economy.
3M employs approximately 100,000 persons. It was not immediately clear the location where the layoffs would occur.