Rising costs, economic slowdown and underperformance seem to be the main reasons for 3M’s decision to cut jobs. As part of cost-cutting measures, the American multinational conglomerate has decided to realign and reduce the size of its safety and industrial division.
While the move, it is hoped, will help streamline things, some employees will have to be let go.
As reported by Bloomberg News, Michale Vale, who heads the Company’s safety and industrial unit, has conveyed the layoff plans to his team saying that the decision to reduce the team size was unavoidable.
The Company, which produces consumer goods and also operates in the areas of industry, worker safety and US health care, reportedly hired about 95,000 people at the end of 2021.
Now, it has realised that for continued growth, it needs to prioritise not only its investments but also its resources, for which adjustments will have to be made in terms of roles and responsibilities.
The safety and industrial division accounts for 3M’s maximum revenue. Last year, it gave the Company 34 per cent of its total sales of about $35 billion.
The Company had indicated that it would focus on the health-care operation, from where close to one fourth of its sales comes. Amongst other things, 3M offers a range of products in the transportation, electronics and consumer markets.