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3M to cut 1,500 jobs as part of 'transformation journey'

The company says its new "global operating model" involves cutting positions in all business groups, functions and locations.

MAPLEWOOD, Minn. — Minnesota-based 3M announced Monday that 1,500 positions are being eliminated during a restructuring process to streamline its global operations. 

The company says its new "global operating model" involves cutting positions in all business groups, functions and locations. A $134 million restructuring charge went on the books for the final quarter of 2019, but 3M expects that shedding the 1,500 jobs will help provide an annual pre-tax savings of $110 to $120 million, $40 million to $50 million of which will be realized in 2020. 

No specifics were given on which locations and divisions the job reductions will come from.

"3M continues to transform how it operates and build a more customer-driven and streamlined organization for the future,” said Mike Roman, 3M chairman and chief executive officer, in a released statement. “The latest phase of our transformation journey is designed to improve growth and operational efficiency, and will enable us to create even more value for our customers and shareholders. This is a defining moment in how we run our company, and positions 3M for success in the years ahead.”

The company reports that 2019 ended with sales of $32.1 billion, down 1.9 percent year-over-year. Shareholders received $4.7 billion in returns via dividends and gross share repurchases.

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