3M to cut 2,000 jobs globally, lowers 2019 profit outlook
- Shares of 3M Co fell 11 percent on Thursday after the U.S. manufacturing conglomerate cut its 2019 earnings forecast and said it would lay off 2,000 workers, citing worsening performance in high-growth markets such as China.
3M, which makes everything from adhesive tapes to air filters, said the dismal performance in the first three months of 2019 was caused by weak demand in the China automotive and electronics sectors, causing it to cut production. An analyst on the call peppered management with questions on Roman’s management style and asked if 3M needed to change its incentives or compensation schemes to get its leaders to adapt faster to the changing macro economy.
“Since the prior CEO stepped down, 3M has really not performed anywhere close to its industrial peers,” Melius Research analyst Scott Davis told CNBC. Sales in Asia-Pacific, 3M’s biggest market outside the United States, fell 7.4 percent, while Europe, Middle East and Africa reported declines of 9.4 percent. Sales in the United States rose just 0.1 percent.
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