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3M to cut 2,900 jobs in restructuring

Published 12/03/2020, 06:57 AM
Updated 12/03/2020, 10:25 AM
© Reuters. FILE PHOTO: The 3M Global Headquarters in Maplewood, Minnesota

(Reuters) - 3M Co said on Thursday it would cut about 2,900 jobs globally and scale back on investments in slower-growing markets as part of a restructuring that is expected to lead to pre-tax savings of up to $250 million.

The company said it expects to record a pre-tax charge of $250 million to $300 million due to the move, with $120 million to $150 million to be incurred in the fourth quarter of 2020.

"The COVID-19 pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster," Chief Executive Officer Mike Roman said.

3M said the restructuring actions would allow it to take advantage of global market trends in e-commerce, health care, automotive electrification and home improvement.

The company had 96,163 employees as of Dec. 31, 2019.

The company said it expects the restructuring to result in annual pre-tax savings of $200 million to $250 million, with $75 million to $100 million in 2021.

© Reuters. FILE PHOTO: The 3M Global Headquarters in Maplewood, Minnesota

(This story corrects paragraph 1 to say cost-savings of up to $250 million, not $350 million and paragraph 6 to say annual pre-tax savings, not this year)

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