3M will cut another 2,900 jobs in 2021 as the coronavirus pandemic continues to change the economy.
“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,” said Mike Roman, 3M’s chief executive, in a statement. “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,” he said.
The restructuring is expected to save the Maplewood-based company $200 million to $250 million pretax in 2021.
To implement the changes, 3M expects to take a pretax charge of $250 million to $300 million, about half of it in the fourth quarter of this year and the remainder likely in the second half of 2021.
Under the changes, the company will take steps to enhance the new operating model it launched at the beginning of 2020, Roman said.
The company said the changes will enable it to further streamline its businesses and focus on and adapt to global trends.
3M announced two rounds of cuts in 2020. At the beginning of the year, it said it would eliminate 1,500 positions. In late spring, it said it was eliminating another 1,700 positions, both because of the restructuring and the sale of its drug delivery unit.
The 2,900 job cuts announced Thursday will “eliminate redundancies and better use analytics to drive additional efficiencies,” the company said.
3M also will use more analytics to drive its marketing programs and establish or improve “digital engagements” with customers.
The company also said it plans to “de-prioritize” investments in end markets seeing slower growth, based on data.
The restructuring is expected to affect approximately 2,900 positions globally.
The job-cut rounds in the first half of 2020 resulted in fewer than 70 jobs being eliminated at the Maplewood headquarters campus.
At the start of 2020, 3M had approximately 15,000 employees in Minnesota, with about 10,500 based in Maplewood.
That made it one of the state’s largest private employers.
The company employed 96,163 people at the end of 2019; 41% worked in the United States, according to a federal securities filing. With acquisitions in recent years, that number was up from 93,516 in 2018 and 91,536 in 2017.
3M stock closed Thursday at $171.83.