3M cutting thousands of jobs, profits tumble
Multinational conglomerate 3M will cut 2,500 global manufacturing roles after fourth-quarter profits plummeted due to a slowing economy.
Mike Roman, chairman and CEO of 3M, said in a release, "In a year impacted by inflation, global conflicts, and economic softening, our team took actions to position 3M for future success."
But, he added, "We expect macroeconomic challenges to persist in 2023."
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The company announced profits fell to $541 million compared to $1.3 billion over the same time in 2021. The earnings statement also showed sales for the quarter slipped 6%, operating cash flow went down 4%, and organic sales growth lost 0.4%.
On the year, 3M’s operating cash flow dropped 25% to $5.6 billion, while adjusted free cash flow also dropped 25% to $4.7 billion.
The company reported the declines were "primarily due to lower net income and the cash impact from capitalization of R&D for U.S. tax purposes."
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Roman said, "The slower-than-expected growth was due to rapid declines in consumer-facing markets along with significant slowing in China due to COVID-related disruptions."
"As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels," he added.