3M To Cut Workforce by 3%
The global manufacturing conglomerate said a coming reorganization would affect almost 3,000 jobs.
DEC 07, 2020
As part of a shift in its operating structure, 3M announced December 3 it would eliminate 2,900 positions globally. In a release, the conglomerate said it would work to streamline its business by focusing on global trends.
3M’s CEO Mike Roman said in a statement that 3M began using a new operating model at the beginning of the year, but that the COVID-19 pandemic has disrupted end markets and forced companies to adapt to changing circumstances faster. In January, before the pandemic hit, the company said it would cut 1,500 jobs as part of an initial restructuring.
“We are taking further actions to streamline our operations, positioning us to deliver greater growth and productivity as global markets emerge from the pandemic,” said Roman. The company anticipates that the latest move will be worth savings of up to $250 million before taxes.
A statement from the company said it would prioritize growth in personal safety, health care, automotive electrification, home improvement, and e-commerce. The conglomerate saw demand for its personal safety and health care products, especially its N-95 filtered masks, explode in the midst of the global outbreak. In October, the company reported that third-quarter sales of health equipment saw 25.5% growth from 2019.
At the same time, though, the company’s other segments have suffered due to pandemic-related loss of demand. 3M, the manufacturer of the Post-It note, made less money in the third quarter on office supplies, general industrial, automotive OEM, traffic safety, consumer electronics, and hospitality sales.