3M announces restructuring – 2’900 positions impacted globally

As the global economy shifts in the wake of the COVID-19 pandemic, 3M is moving forward with its plans to streamline its business and focus on global trends where it can drive sustainable growth,” the company states in a press release. "The COVID-19 pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster," says Mike Roman, 3M chairman and chief executive officer. "At the same time, we are seeing significant opportunities from our new operating model which we launched at the start of the year. As a result, we are taking further actions to streamline our operations, positioning us to deliver greater growth and productivity as global markets emerge from the pandemic." With these new actions 3M is announcing, the company will further enhance its operations and marketing capabilities. In operations, 3M says it will eliminate redundancies and better use analytics to drive additional efficiencies. In marketing, 3M will build on its success in utilising data insights, accelerating global marketing programs, and activating digital engagements with customers. As a result of these actions, 3M says it will be better positioned to take advantage of global market trends in e-commerce, personal safety, health care, automotive electrification, and home improvement. At the same time, the company plans to de-prioritize investments in end markets where growth is slower. These restructuring actions – which will impact all business groups, functions and geographies – are expected to take a total pre-tax charge of USD 250 to USD 300 million, with USD 120 to USD 150 million in the fourth quarter of 2020. The remainder of the pre-tax charge is currently anticipated to be incurred primarily in the second half of 2021. The company anticipates annual pre-tax savings of USD 200 to USD 250 million from these actions. The restructuring is expected to impact approximately 2’900 positions globally