When 3M reported its first-quarter 2023 economic results, it wasn’t what the company had hoped for.
As part of the report, 3M announced plans to cut 6,000 jobs in the manufacturer’s latest move to adjust to slumping demand in several key markets.
“In the first quarter we continued our relentless focus on serving customers and aggressively managed costs,” said 3M chairman and CEO Mike Roman. “Market trends were as we expected, and we made changes to improve our operations and position us for success as supply chains improve.
“To strengthen 3M for the future, today 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,” he added. “We will continue to prioritize investments in high-growth end markets where 3M science gives us a clear competitive advantage.”
Officials said the reductions, part of a wider restructuring, are expected to cut annual costs by some $900 million, 3M said in a statement reporting first-quarter earnings. The company has now announced 8,500 total job cuts this year, which would equate to about a 9% decline in its global workforce.
These actions “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,” Roman said in the statement.
The stock rose 1.4% at 8:04 a.m. in early trading in New York. Shares of the St. Paul, Minnesota-based manufacturing giant had declined 12% this year, the worst performance in the Dow Jones industrial average, Blooomberg reported.