MAPLEWOOD, Minn. — Editor's note: The video above first aired on Jan. 24, 2023.
Minnesota-based 3M is embarking on a structural reorganization plan that includes eliminating 6,000 positions from its global workforce.
3M made the announcement Tuesday morning, saying the reductions are intended to make the company "stronger, leaner and more focused."
"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 CEO Mike Roman said in a released statement to stockholders. "We will continue to prioritize investments in high-growth end markets where 3M science gives us a clear competitive advantage."
The reduction of approximately 6,000 positions comes on top of 2,500 global manufacturing job cuts announced in January of 2023. At this time 3M has not specified exactly which divisions or locations the reductions are coming from, but a spokesperson tells KARE 11 that 600 of the cuts will take place in Minnesota, mostly at company headquarters in Maplewood. The eliminated positions include some at the corporate level.
The staff reductions are expected to save the company an estimated $700-900 million, pre-tax.
3M made the restructuring announcements as first quarter results were released. The company reported GAAP earnings per share of $1.76, with sales of $8 billion down 9% from 2022. 3M returned $856 million to shareholders.
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