3M to cut another 6,000 jobs as company announces ‘restructuring actions’
3M announced it is reducing the size of the company by cutting 6,000 jobs worldwide, in addition to the 2,500 manufacturing jobs that were cut in January, according to its 2023 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.”
The goal of the restructuring is to make the company “stronger, leaner and more focused” according to the report. 3M projects annual pre-tax savings of $700 million to $900 million after the job cuts are complete.
The report shows that sales for 3M fell about 9% to $8 billion, and the company returned $856 million to shareholders.
The report notes that 3M is taking restructuring actions, including reducing layers of management, simplifying the company’s supply chain and reducing “the size of the corporate center of the company.”
“Market trends were as we expected, and we made changes to improve our operations and position us for success as supply chains improve,” Roman stated in the release.