3M Co. plans to cut 2,900 jobs as Chief Executive Officer Mike Roman accelerates an overhaul amid the Covid-19 pandemic and a need to focus on doing more business online.
The maker of Post-it notes, medical masks and chemical additives will step up the use of analytics and data to improve efficiency and enhance marketing in response to an increasingly digital age, the Minnesota-based company said Thursday. The measures, cutting about 3% of its employees as of the end of last year, will result in a pretax charge of as much as $300 million.
3M has boosted production of the N95 masks needed by health-care workers to protect against the coronavirus, but sales otherwise have been sluggish during the pandemic. Third-quarter organic sales growth was about 1% in the third quarter and the company was unable to provide an earnings forecast.
3M highlighted safety equipment, health care, electric vehicles and home improvement among the growth markets it’s targeting. At the same time, Roman will scale back investment in slower growth areas, the company said, without giving details.
Having announced strategic steps to transform 3M in January, Roman returned to the drawing board in the wake of the pandemic that’s hurt economies worldwide.
These latest measures are expected to generate annual pretax savings of as much as $250 million.
3M generated scant volume before the start of regular trading in New York on Thursday. The stock has dropped 2.6% this year while the Dow Jones Industrial Average gained 4.7%.