Mass layoffs: 3M cuts more than 6,000 jobs – 04/25/2023 – Market

The American industrial conglomerate 3M, which produces everything from medical equipment to Post-it notes, announced this Tuesday (25) new mass layoffs, when publishing its quarterly results.

3M reported “restructuring actions” that will affect “all functions, all activities and geographic areas, and will impact about 6,000 positions”, in addition to the “reduction of 2,500 production vacancies announced in January”, communicated the group.

Earlier this year, the company announced that it expected economic difficulties in 2023. “We expect macroeconomic challenges to persist through 2023,” the company indicated at the time.

According to 3M, the dismissals will save between US$ 700 and 900 million, around R$ 3.535 to R$ 4.545 billion. At the end of 2021, the company had around 95,000 employees.

3M’s revenue fell 9% in the first quarter of 2023 compared to the same period in 2022, to US$ 8 billion (R$ 40.4 billion), above the consensus of analysts gathered by Factset.

Meanwhile, earnings per share fell to US$1.97 (R$9.94), still above market expectations.

The group maintained its 2 to 6% outlook on falling sales in 2023 and earnings per share between US$8.5 (R$42.92) and US$9 (R$45.45).

At 11:35 am (Brasilia time), shares of 3M rose 1.28% on Wall Street.