3M Restructuring Plan Calls for Cutting Another 2,900 Jobs Globally
Maplewood-based 3M Co. issued a statement Thursday morning outlining plans to “advance [the company’s] operating model, improve cost structure, and accelerate innovation.” Translation: The Fortune 500 conglomerate is launching a restructuring that will eliminate approximately 2,900 jobs globally.
According to the company’s statement, the move “will impact all business groups, functions and geographies.” 3M estimates that it will take pre-tax charges of $250 million to $300 million for the restructuring.
It marks the third round of significant job cuts that 3M has announced in the last 20 months. Combined, those three rounds will have eliminated approximately 6,400 jobs.
In January, 3M announced plans to cut 1,500 jobs globally.
“The Covid-19 pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster,” said Mike Roman, 3M chairman and CEO, in a statement. “At the same time, we are seeing significant opportunities from our new operating model which we launched at the start of the year. As a result, we are taking further actions to streamline our operations, positioning us to deliver greater growth and productivity as global markets emerge from the pandemic.”
For 2019, 3M reported $32.1 billion in revenue and net profits of $4.6 billion. The company’s overall sales were down 1.9 percent compared to 2018.
For the third quarter of this year, 3M reported sales of $8.35 billion, an increase of 4.5 percent compared to the third quarter last year. But for the first nine months of 2020, 3M’s sales of $23.6 billion are down 1.8 percent compared to the first three quarters of 2019.
Earlier this year 3M sold off the bulk of its drug delivery business for $650 million. The spinoff Kindeva Drug Delivery plans to build a new headquarters in Woodbury. Approximately 900 former 3M employees are now part of Kindeva.
At the end of 2019, 3M employed a total of 96,163 people. Of those, about 59 percent were employed internationally outside the U.S. Though the company has cut thousands of jobs in recent years, the 2019 count actually marked an increase over prior years due to a major acquisition that year.