3M announced plans to cut 2,500 global manufacturing jobs due to weakening demand and a dip in profits. The layoffs will affect employees in the U.S., Europe, and Asia. The company stated that the job cuts are necessary to “accelerate the transformation of its global manufacturing footprint.”
The job cuts are part of a larger restructuring plan that includes the closure of several plants, consolidation of production lines, and the sale of some assets. The company expects to incur $500 million to $550 million in pre-tax charges, $400 million to $450 million of which will be cash costs. The restructuring is expected to generate annualized pre-tax savings of approximately $250 million by 2022.
3M reported a 7.5% decrease in profits in the second quarter of 2019, citing “a challenging global macroeconomic environment and weak industrial demand.” The company has been struggling to adjust to changing customer demands and new technologies, which have led to lower demand for some of its products. The company has also been hit by the ongoing U.S.-China trade war, which has impacted its ability to export products to China.