3M, the company that makes Scotch tape, cuts 2000 jobs
The industrial producer announced Thursday when it reported weak sales in the last quarter and the dark its outlook for the coming year.
Turnover went up 5% to $ 7.9 billion last year compared to the same period a year ago. Although sales picked up in the US, 3M's largest region, sales fell more than 9% in Europe, the Middle East and Africa. These areas constitute 3M's second largest region. Sales in Asia also fell more than 7% compared to a year ago.
"The first quarter was a disappointing start to the year for 3M," said Mike Roman, 3M CEO, in a statement.
3M said the work cuts, representing around 2% of its global workforce, will save the company up to $ 250 million annually. 3M will spread the cuts across various business divisions and geographical areas "with emphasis on corporate structure and underperforming areas."
The stock dropped more than 10% in early trading Thursday, which drove down the Dow.