|
The move comes as an uncertain economy along with rising
interest rates and stubbornly high inflation forces corporate
America to get leaner in recent months.
3M, which makes electronic displays for smartphones and tablets,
has been struggling with waning demand for consumer electronics
as sticky inflation makes buyers cut back on discretionary
spending.
The maker of 'Scotch' tape and 'Post-it' notes has been raising
prices to offset a hit from surging commodity costs.
Along with this, recent cost-cut actions helped 3M beat profit
and revenue estimates for the first quarter, sending its shares
up 1.8% at $106.9 in premarket trading.
"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.
The restructuring, which is expected to hit all functions,
businesses, and geographies, is aimed at reducing layers of
management and the size of the corporate center, the company
said. Tuesday's 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, above
analysts' expectations of $1.58 per share, according to
Refinitiv. Revenue of $8.03 billion also topped estimates of
$7.49 billion.
(Reporting by Kannaki Deka in Bengaluru; Editing by Subhranshu
Sahu)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
