- Citing the global economy shifts due to the COVID-19 pandemic, 3M (NYSE:MMM) to further enhance its operations, marketing capabilities and to initiate restructuring actions that will impact all business groups, functions and geographies.
- In operations, the company will eliminate redundancies and better use analytics to drive additional efficiencies and in marketing it will build on its success in utilizing data insights, accelerating global marketing programs, and activating digital engagements with customers.
- The company plans to de-prioritize investments in end markets where growth is slower.
- The company expects to take a total pre-tax charge of $250M-$300M, with $120M-$15M in 4Q20 and the remainder of the pre-tax charge is currently anticipated to be incurred primarily in 2H21.
- The company anticipates annual pre-tax savings of $200M-$250M from these actions, with $75M-$100M of pre-tax savings in 2021.
- The restructuring is expected to impact ~2,900 positions globally.
- "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 chairman and chief executive officer. "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."