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3M Co said on Tuesday it would cut 2,500 manufacturing jobs after reporting a lower profit, as the U.S. industrial conglomerate faces a demand slowdown in its unit that sells products including notebooks, air purifiers and respirators.
A softer-than-expected consumer spending amid inflationary pressures has eaten into the sales of 3M's consumer unit which generated about $5.30 billion in revenue in 2022.
Additionally, a cut back from U.S. retailers dealing with elevated inventory levels also dampened demand.
"The slower-than-expected growth was due to rapid declines in consumer-facing markets," Chief Executive Mike Roman said.
"As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels," he added.
The St. Paul, Minnesota-based company reported a profit of 98 cents per share for the fourth quarter, down from $2.31 per share, a year earlier, mainly on charges related to PFAS manufacturing exit.
Sales in the quarter fell 6% to $8.1 billion. Excluding items, the company reported a profit of $2.28 per share compared to $2.45 per share a year earlier.
(Reporting by Aishwarya Nair in Bengaluru Editing by Vinay Dwivedi)