3M Posts Lower Sales for 2022, Announces Workforce Reduction Plans
3M reported fourth-quarter and full-year 2022 results on Tuesday, January 24, and also provided its 2023 financial outlook. As part of the announcement, the company stated that it will reduce approximately 2,500 global manufacturing roles, due to reduced production volumes.
3M reported sales for 2022 of $3.42 billion, which is down 3% year-on-year. The decrease included impacts of -1% from divestitures and -4% from foreign currency transition due to the strength of the U.S. dollar. In its earnings call, 3M listed declines in consumer-facing markets such as consumer electronics and retail, slowing growth in China due to COVID-related disruptions, and moderating demand in all industrial markets as reasons for the slower than expected growth. The company also saw declines due to falling demand for disposable respirators and its exit from Russia, which negatively impacted organic sales grown by 2 percentage points for the year and 2.6 percentage points in the fourth quarter.