The US multinational conglomerate 3M revealed, on Tuesday, that the decreasing demand for consumer electronics resulted in lower profits. Based on that assessment, the multinational company announced that it will be cutting 6,000 jobs from across its global operations, which range from transportation to healthcare.

CEO Mike Roman explained that in the first quarter, 3M continued a "relentless focus on serving customers and aggressively managed costs," however, "to strengthen 3M for the future, today we announced actions that will reduce cost at the corporate center, further simplify and strengthen our supply chain structure and streamline our go-to-market business models."

In the first quarter, the multinational's profits were noted at $979 million. That meant that the first quarter was down 25% on lower revenues of $8.0 billion.

In pre-market trade, shares of 3M decreased by 0.5% to $104.50.

In the more detailed earnings presentation, the company pointed to "significant weakness" in consumer electronics, such as smartphones, tablets, and televisions but noted that the market is estimated to stabilize throughout the second half of 2023.

Similarly, 3M remarked on the significant decline in face masks sale which was, due to the Covid-19 pandemic, at elevated levels throughout 2022.

While the job cuts are estimated to result in a $700 million to $900 million increase in annual savings, 3M also noted that it would now focus on "high-growth" segments such as automotive electrification to offset these trends, adding that it planned to invest in climate technology, sustainable packaging, and other "emerging areas."

While the job cuts have been anticipated to increase annual savings by $700 to $900 million, 3M also stated that in order to counteract the decreasing trends, it would now concentrate on "high-growth" segments like automotive electrification along with planned investments in climate technology, sustainable packaging, and other "emerging areas".

Job cuts continue across major companies

US rideshare service Lyft on, April 14, sent word to employees that it plans a major staffing reduction to cut costs.

"We need to be a faster, flatter company," Lyft chief executive David Risher said in an email.

"We will significantly reduce the size of the team as part of a restructuring to focus on better meeting the needs of riders and drivers," the newly appointed CEO announced.

Lyft will notify employees next week as to whether they still have jobs with the San Francisco-based company, which will keep all of its offices closed that day, the chief executive noted.

The company declined to provide details on the number of affected staff, but the Wall Street Journal reported earlier in the day that the move could impact 30% of Lyft's workforce; i.e. more than 4,000 employees.

According to Risher, Lyft plans to use the money it saves to keep prices competitive, improve pick-up times, and give drivers better earnings.

Lyft could see costs slashed by half after the layoffs, the WSJ report suggested.

Read more: Meta lay-offs continue, with 10,000 job cuts eyed anew