© Reuters. FILE PHOTO: The company logo and trading information for 3M is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 29, 2022. REUTERS/Brendan McDermid
(Reuters) -3M Co said on Tuesday it would cut about 6,000 positions globally as the U.S. industrial conglomerate looks to focus on high-growth businesses, including automotive electrification and home improvement.
Shares of the St. Paul, Minnesota-based company were up 1.6% at $106.7 in premarket trade.
The move comes as consumers are cutting back on discretionary spending as a series of interest rate hikes over the past year to bring down stubbornly high inflation has stoked fears of an economic downturn.
3M, which makes everything from ‘Scotch’ tape and ‘Post-it’ notes to power tools and medical products, has been raising prices to offset a hit from surging commodity costs.
“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.
These restructuring actions are expected to affect all functions, businesses, and geographies, the company said, adding that the job cut is in addition to the reduction of 2,500 roles announced earlier this year.
The company had about 92,000 employees, as of Dec. 31, 2022, according to its annual filing.
3M anticipates annual pre-tax savings of $700 million to $900 million upon completion of the cost-cut actions.
The St. Paul, Minnesota-based company reported an adjusted profit of $1.97 per share for the quarter ended March 31, down from $2.63 per share a year earlier.
(Reportin by Kannaki Deka in Bengaluru; Editing by Subhranshu Sahu)
