3M
(NYSE: MMM)
notified the state of Minnesota of its plans to lay off approximately 1,100 employees connected to its headquarters.
News of these specific layoffs come hand-in-hand with last month’s announcement that 3M planned to reduce its headcount by 6,000 employees. That followed a previous announcement of 2,500 layoffs in January.
It remains unclear how many of the job cuts come from the 3M’s Health Care business, which remains on track for a spin-off. The total 8,500 jobs getting cut represent nearly a tenth of the manufacturing giant’s global workforce. 3M expects the restructuring initiative to save the company $700–900 million a year before taxes.
The cost-reduction plans include reducing the size of the company’s corporate center, simplifying the supply chain, streamlining the company’s geographic footprint and reducing management layers. 3M also plans to streamline its go-to-market models to more closely align with customers’ needs.
The company said it decided it “must permanently layoff” about 1,100 employees connected to the Maplewood, Minnesota site — which is just outside St. Paul. The 3M Corporate Headquarters site won’t close as part of these actions.
3M scheduled the terminations to begin on June 30, 2023. No impacted employees have union representation, and none retain bumping rights.
Shares of MMM dipped 2% to $103.69 in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — fell 0.2%.
When 3M announced its layoffs, CEO Mike Roman on the company’s first-quarter earnings call labeled the reductions “the right actions.”
“We’re confident that these are the right actions about positioning us for growth and profitability as we go forward,” Roman said. “And it’ll help us navigate … some of the challenges and uncertainty we have in the current market.”