On Tuesday, 3M Co (MMM.N) announced it would reduce 6,000 jobs worldwide to focus on high-growth industries, including automotive electrification and home renovation.
In recent months, an uncertain economy, increasing interest rates, and soaring inflation have forced corporate America to cut costs.
As persistent inflation curbs discretionary spending, 3M, which develops smartphone and tablet screens, has struggled. ‘Scotch’ tape and ‘Post-it’ note producer 3M has raised pricing to counter rising material costs.
Recent cost-cutting helped 3M outperform first-quarter profit and revenue projections, sending company shares up 1.8% to $106.9 in premarket trade.
“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,” said 3M CEO Mike Roman.
The company stated the restructuring would reduce management layers and corporate center size across all departments, companies, and geographies. Tuesday’s employment layoff follows 2,500 earlier this year.
According to its annual report, the corporation employed 92,000 workers on December 31, 2022. After cost-cutting, 3M expects annual pre-tax savings of $700–$900 million.
Refinitiv announced that the St. Paul, Minnesota-based firm earned $1.97 per share for the quarter ended March 31, above analysts’ projections of $1.58 per share. $8.03 billion revenue above $7.49 billion projections.