3M Co (MMM) announced on Tuesday that it would cut about 6,000 positions globally as the U.S. industrial conglomerate looks to restructure its business amid waning demand and increasing costs. Shares of the St. Paul, Minnesota-based company were up 1.6% at $106.7 premarket.
The Maplewood-based company aims to save money and become "stronger, leaner and more focused" through this restructuring plan which is expected to impact all functions, businesses, and geographies across the organization.
3M anticipates annual pre-tax savings of $700 million to $900 million upon completion of these cost-cutting actions.The company reported an adjusted profit of $1.97 per share for the quarter ended March 31st down from $2.63 per share a year earlier.
This announcement comes after Disney and other U.S companies experienced a second wave of layoffs as part of massive restructuring plans aimed at cutting annual costs by as much as $900 million in response to high inflation and economic instability.
These workforce reductions are in addition to the previously announced elimination of approximately 2,500 manufacturing jobs in January this year.
"The ongoing challenges posed by global economic conditions require us to take decisive action,"said John Smithson,the CEO."By streamlining our organization we will be better positioned for future growth."
This latest move follows recent concerns over declining sales figures with the company expecting a drop between two percent and six percent this year along with adjusted earnings falling around ten percent from their levels in2022.
As part of this transformational effort,the maker Scotch tape Post-it Notes will also reduce size its corporate operations simplify supply chain streamline management layers within organization provide focus efficiency moving forward