Post-It notes maker 3M cutting about 1,500 jobs
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, in addition to Post-it notes, makes industrial coatings and ceramics.
The 1,500 job cuts come less than a year after the company announced 2,000 layoffs.
The latest round equates to about 1.5% of 3M’s global workforce, and CEO Michael Roman said the cuts will occur across all business groups and geographies.
“Organic growth company-wide in the fourth quarter was minus 2.6%, in line with our guidance,” Roman said in a conference call with analysts. “We continued to face softness in certain end markets, namely China, automotive, and electronics, which impacted overall growth.”
Earlier this month, the Institute for Supply Management reported that US 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. (AP)