Latest 3M layoffs affecting 1,100 employees at Maplewood headquarters
Minnesota-based 3M is planning to lay off more than 1,000 employees at its Maplewood headquarters, according to a notice filed with the state.
The company plans to permanently lay off around 1,100 employees starting on June 30, a Worker Adjustment and Retraining Notification (WARN) notice states.
It comes a week after 3M announced plans to cut 6,000 jobs worldwide. The company also cut 2,500 manufacturing jobs back in January, according to its first-quarter report.
“To strengthen 3M for the future, today we announced actions that will reduce costs at the corporate center, further simplify and strengthen our supply chain structure, and streamline our go-to-market business models, which will improve margins and cash flow,” said 3M Chairman and CEO Mike Roman in the report. “We will continue to prioritize investments in high-growth end markets where 3M science gives us a clear competitive advantage.”
A spokesperson for 3M says the 1,100 layoffs include 600 Minnesotans, which were part of last week’s announced global cuts, as well as 500 remote workers whose home base is the Maplewood headquarters.
Before the latest cuts were announced, 3M employed around 12,000 employees in Minnesota, the company says.
“It’s certainly a tough day, obviously for 3M, but particularly for the individuals that are affected by the announcement,” Kevin McKinnon, temporary commissioner with the Department of Employment and Economic Development (DEED), said.
McKinnon was asked about the impact this could have on the state’s economy.
“The people that are coming out of 3M are qualified individuals that present opportunities for other companies as well,” McKinnon answered, adding: “Which is actually one of the benefits of certainly the Minnesota economy being as diverse as it is.”
DEED says it’ll be meeting with 3M to learn how best to help those who lost their job – telling 5 EYEWITNESS NEWS that could include job placement and, or new training.
Dean for Saint Cloud State University’s School of Public Affairs, and professor of economics, King Banaian calls the layoffs a “pretty significant hit” to the Maplewood facility. As for the message the layoffs send, Banaian says it’s one with a focus on the bottom line.
“I think they’re trying to demonstrate, particularly to their own investors, that they’re serious about getting a handle on cost,” Banaian said.
3M recorded sales of $34.2 billion in 2022 – a 3% decrease from the year before.