U.S. technology company 3M announced the continuation of its restructuring plan initiated last January, which will result in a cut of about 3 percent of its global workforce, amounting to roughly 2,900 jobs.
After introducing a new global operating model in January that was meant to enhance the way the supplier operates and enable the company to be more customer-focused and responsive, 3M has now announced that it is planning further restructuring actions necessary in the wake of the Covid-19 pandemic that will impact all business groups, functions and geographies. 3M said it will shift its focus and investments from slow-growing markets to areas where it is stronger, such as healthcare and e-commerce. 3M was among the worst performing stocks in the Dow Jones last year. This year, however, it has only fallen by 2.5 percent. In the healthcare sector, 3M’s revenues have recently grown by more than 25 percent, primarily due to the production of the popular N95 mask, where 3M could barely keep up with demand.
The restructuring is expected to affect all divisions. The layoffs will cost the company approximately $300 million before taxes. The company had already laid off 1,500 of its employees in January as the company struggled in the trade war between the U.S. and China.