3M announces restructuring actions, to reduce 6,000 positions globally

3M is taking restructuring actions. The structural reorganization will reduce the size of the corporate center 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 6,000 positions globally, in addition to the reduction of 2,500 global manufacturing roles announced in January. 3M anticipates annual pre-tax savings of $700M to $900M upon completion of these actions. These 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 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 prioritize emerging growth areas such as climate technology, sustainable packaging, industrial automation, semiconductors, and next-generation consumer electronics. The company expects total pre-tax charges of $700M to $900M inclusive of previous actions announced in January. 3M expects to incur approximately half of the pre-tax charges in 2023, with $175M to $250M expected in the second quarter. The charges will be offset by pre-tax savings and are included in the company’s full-year 2023 guidance.