3M Plans 1,500 Job Cuts as Dollar Pinches Overseas Sales
By Rick Clough
October 22, 2015 — 7:40 AM EDT
Updated on October 22, 2015 — 9:47 AM EDT
3M Co. plans to cut 1,500 jobs in a global restructuring effort as the maker of touchscreens and Post-it Notes fights sluggish growth overseas and a strong U.S. dollar that’s crimping sales.
The workforce pullback, about 1.7 percent of 3M’s total at the start of the year, was announced Thursday along with a reduction in the top end of the company’s 2015 profit forecast. 3M also lowered its full-year revenue projection.
The currency squeeze highlights 3M’s dependence on international business, which accounts for about two-thirds of revenue, and echoed the experience of many U.S. manufacturers. Of 32 companies in the Standard & Poor’s 500 Industrials index reporting third-quarter results, 22 posted sales that missed analysts’ estimates, according to data compiled by Bloomberg.
“The current economic growth environment remains challenging,” Chief Executive Officer Inge Thulin said on a conference call. The restructuring plan is designed to make 3M “a stronger, more agile, more focused company.”
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http://www.bloomberg.com/news/articles/2015-10-22/3m-plans-1-500-jobs-cuts-drops-top-end-of-2015-profit-forecast