3M had recently announced that it sees the need to cut as much as 1,500 jobs as part of its restructuring plan.
The goal, according to 3M Chairman, President and Chief Executive Officer Inge G. Thulin, is to build “a stronger, more streamlined and more focused company that can compete and win for years to come.”
3M says the job cuts will actually be done worldwide. However, it will be mainly looking at structural overhead, primarily in the U.S. and its other weak performing markets including Europe, Middle East and Africa (EMEA) as well as Latin America. The company is expecting to take on a pre-tax charge of as much as $100 million or $0.13 per share that will be reflected in the fourth quarter.
Overall, 3M reported sales of $7.7 billion, a significant sales decline of 5.2 percent year-on-year. However, the company also reported an organic local-currency sales growth o 1.2 percent. Nonetheless, 3M’s electronics and energy segment suffered the worst sales decline among all of its businesses, reporting sales of $1.4 billion, which is down by 8.1 percent. Meanwhile, sales in the 3M industrial business is down by 7.1 percent with total sales of $2.6 billion in the third quarter. At the same time, the company’s health care sales is down by 3.2 percent, while the company’s safety and graphics as well as consumer, business are down slightly by 2.2 percent and 1.2 percent, respectively.
Meanwhile, the job cuts are expected to give the company as much as $130 million in pre-tax savings come 2016. The company currently has 90,000 employees around the world.