3M cuts 1,500 jobs as sales in Asia weakened
American industrial company 3M has cut 1,500 jobs as part of a restructuring exercise after reporting a 28% fall in quarterly profits amidst weakened sales in Asia.
China, a high-growth market for the company, expanded at its slowest pace in almost three decades in 2019 amid a bruising trade war with the United States that hit factory production.
3M, which produces household items such as Scotch tapes to industrial equipments like welding helmets, will look to overhaul and consolidate its headcount and operations in manufacturing, supply chain and customer service.
And the first in line are the 1,500 jobs which represent about 2% of its global workforce. To make matters worse, the company’s shares fell more than 5% following the announcement.
But the company is set to get a boost as it has reported a spike in demand for its masks following the outbreak of the Wuhan virus in China which has spread to many countries including Hong Kong, Taiwan, Singapore, Thailand, Japan, Australia and even United States.