First-quarter profit fell 25% and 3M plans to cut another 6,000 jobs

On April 25, 3M reported quarterly financial results, sales in the first quarter of $8 billion, down 9.0% year on year; Net income was $976 million, down 24.9 percent from a year earlier. The reasons were "significant" weakness in consumer electronics end markets, shifting consumer spending patterns, retailer destocking, and continuing geopolitical challenges in Europe.

3M is in the midst of a restructuring that will shrink the company's corporate center, streamline its supply chain, streamline its global footprint and reduce management. 3M will also simplify its go-to-market model to more closely align with customer needs.

3M announced plans to cut another 6, 000 jobs, or about 10 per cent of its global workforce, in addition to the 2, 500 manufacturing layoffs announced in January. The restructuring is expected to save $700 million to $900 million in annual costs.

Mike Roman, 3M's chairman and chief executive officer, said the cost-cutting actions will reduce the company's core costs, further simplify and strengthen its supply chain structure, and simplify the business model to market, which will improve margins and cash flow.

3M also reiterated its January forecast for 2023 sales to contract 2% to 6% year-over-year and full-year adjusted earnings per share of $8.50 to $9.00, down from 2022 results of $9.88 per share.

Going forward, 3M will continue to focus on high-growth markets, including automotive electrification, home renovation, personal safety, electronics and healthcare. In addition, 3M will prioritize emerging growth areas such as climate technology, sustainable packaging, industrial automation, semiconductors and next-generation consumer electronics.