In grinding manufacturing slump, 3M cuts another 1,500 jobs

Published 4:05 pm Tuesday, January 28, 2020

A profound slump in manufacturing and a trade war that has slowed economic growth in China has led to a second round of layoffs at 3M, the Minnesota company that makes Post-it notes as well as industrial coatings and ceramics.

The 1,500 job cuts come on top of the 2,000 jobs the company trimmed less than a year ago.

The latest round represents about 1.5 percent of 3M’s global workforce, and CEO Michael Roman said the cuts will occur across all business groups and geographies.

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“We continued to face softness in certain end markets, namely China, automotive, and electronics, which impacted overall growth,” Roman said in a conference call discussing 3M’s fourth-quarter results with analysts.

Earlier this month, the Institute for Supply Management reported that U.S. manufacturing activity fell to the lowest level in more than a decade. A survey by the association of purchasing managers found that companies are uncertain about trade and are seeing weak demand from abroad.

The manufacturing sector last year was rocked by slower global growth and the escalation of trade tensions between the United States and China. President Donald Trump signed an initial agreement with China this month that may ease some of the drag caused by tariffs and threats of additional import taxes. However, the spread of a new virus in China threatens to hammer the nation’s economy, and possibly others.

3M also makes virus masks and in response to the spreading coronavirus in China, which has now killed at least 106 people, 3M is rapidly increasing production.