US Industrial Company 3M To Lay Off 6,000 People Worldwide

American multinational corporation 3M has announced a round of mass layoffs as a result of slowing manufacturing and sales and cost-cutting measures taken in response to declining consumer electronics demand.

The Mining and Manufacturing Company is laying off an additional 6,000 workers as it intensifies its efforts to reduce spending and revive its troubled operations.

The diversified manufacturer said on Tuesday it will shift its focus to high-growth businesses, including automotive electrification and home improvement, and prioritise emerging growth areas such as climate technology and next-generation consumer electronics.

The job-cut decision comes as an uncertain economy, rising interest rates, and stubbornly high inflation have forced corporate America to get leaner in recent months.

3M, which makes electronic displays for smartphones and tablets, has been struggling with waning demand for consumer electronics as people are cutting back on discretionary spending amid recession worries.

The company's consumer electronic business fell 35% in the first quarter, Chief Financial Officer Monish Patolawala said on a call with analysts.

"Relative to the first quarter of last year, consumers have shifted their spending patterns to more non-discretionary items, and retailers have aggressively reduced their inventory levels," Patolawala said.

The restructuring, which is expected to hit all functions, businesses, and geographies, is aimed at reducing management layers and the corporate centre's size, the company said.

According to a statement released by 3M in relation to first-quarter earnings, the reductions, which are a part of an ongoing restructuring, are anticipated to reduce yearly expenses by up to $900 million.

(With inputs from Reuters)