3M announces thousands of layoffs, restructuring actions after declining sales
Saying it hopes to make its company "stronger, leaner and more focused," 3M announced thousands of layoffs Tuesday.
MAPLEWOOD, Minn. (FOX 9) - Saying it hopes to make its company "stronger, leaner and more focused," 3M announced thousands of layoffs Tuesday after it presented its quarterly earnings report that showed sales declines.
"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," 3M Chairman and CEO Mike Roman said in a statement. "We will continue to prioritize investments in high-growth end markets where 3M science gives us a clear competitive advantage."
3M’s sales of $8 billion declined 9 percent year-on-year, with organic sales declining 4.9 percent during the same period, according to the company.
According to an announcement, 3M will take restructuring actions that will "reduce the size of the corporate center of the company, simplify supply chain, streamline 3M's geographic footprint, reduce layers of management, and further align business go-to-market models to customers."
As a result, the company will reduce approximately 6,000 positions globally, in addition to the reduction of 2,500 global manufacturing roles announced in January 2023.
Through the cuts, 3M anticipates annual pre-tax savings of $700 million to $900 million.