3M to Cut 6,000 More Jobs for Restructuring Plan and Improve Profitability
03 May 2023: 3M Co. said in a statement that the reductions are part of an ongoing restructuring and are expected reduce annual costs by US$900 million. The company has now announced 8,500 total job cuts this year, which would equate to about a 10% decline in its global workforce.
3M Chief Executive Officer Mike Roman said “These actions would further simplify operations and improve profitability. Our experience throughout this journey, including lessons learned during the pandemic, supply chain disruptions and changing global trends, has shown us what is working and what we can do better.”
The results highlight how the maker of Post-it notes, respirators and smartphone display materials is struggling to shake off weak demand for consumer goods, electronics and more of its roughly 60,000 products. Sales of virus-filtering respirators coming off pandemic-fueled highs and China’s choppy economic reopening have also weighed on 3M’s results.
The conglomerate’s operational struggles have added to investor fears over what could be billions of dollars in potential liabilities stemming from allegedly faulty earplugs supplied to US combat troops and contamination from so-called forever chemicals, which 3M plans to stop producing by the end of 2025.
3M also announced management changes. The biggest being Michael Vale, a 30-year 3M veteran, being appointed to chief business and country officer, a new role on the firm’s operating committee. He will report to Roman and oversee three of the firm’s four units.
