All businesses and geographies affected by latest staff cuts.

 

Global conglomerate 3M has announced a major overhaul of its operations which will results in thousands of job cuts.

 

In a statement as part of its third quarter results, the company y said: “3M is taking restructuring actions that are intended to make 3M stronger, leaner and more focused. 

 

“The structural reorganisation will reduce the size of the corporate centre of the company, simplify supply chain, streamline 3M's geographic footprint, reduce layers of management, and further align business go-to-market models to customers. 

 

“These restructuring actions are expected to affect all functions, businesses, and geographies and will impact approximately 6000 positions globally, in addition to the reduction of 2500 global manufacturing roles announced in January 2023.

 

3M anticipates annual pre-tax savings of US$700 million to US$900 million upon completion of these actions.

 

3M said the actions are expected to reduce costs and drive long-term improvement in margins and cash flow while enabling a more efficient and effective structure for driving long-term growth. 

 

The company said it will continue to focus its commercial efforts in high-growth markets including automotive electrification, home improvement, personal safety, electronics, and health care.

 

In addition, 3M will prioritise emerging growth areas such as climate technology, sustainable packaging, industrial automation, semiconductors, and next-generation consumer electronics.

 

On a more positive note, 3M’s stationery and office division reported single digit growth in Q3 revenue to US$263 million.