(Adds details, context)
April 25 (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)
