US industrial company 3M to cut 6,000 jobs globally

Company anticipates annual pre-tax savings of $700m to $900m upon completion of cost-cutting actions

US-based 3M is restructuring its business amid waning demand and increasing costs. Reuters

US industrial conglomerate 3M on Tuesday said it would cut about 6,000 positions worldwide as it looks to focus on high-growth businesses, including automotive electrification and home improvement.

Shares of the company based in Saint Paul, Minnesota, were up 1.6 per cent at $106.7 during pre-market trading.

The move comes as consumers are cutting back on discretionary spending as a series of interest rate increases 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 centre, 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 chief executive Mike Roman.

These restructuring actions are expected to affect all functions, businesses and geographies, the company said. The job cut is in addition to the reduction of 2,500 roles announced earlier this year.

The company had about 92,000 employees at the end of 2022, according to its annual filing.

3M anticipates annual pre-tax savings of $700 million to $900 million upon completion of the cost-cutting actions.

The 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.