Minnesota-based 3M has announced another round of job cuts as part of a restructuring process.
The company, known for its Scotch tape and Post-it notes products, will cut positions companywide, reducing its headcount by 6,000 to streamline its operations, according to The Wall Street Journal (WSJ).
The move is in addition to the 2,500 manufacturing jobs the company cut in January, according to the WSJ.
The announcement came amid 3M’s first quarter earnings report on Tuesday, where it delivered an outsized earnings beat and surpassed analyst sales estimates by $517 million.
3M shares fell roughly 1% on Tuesday, and its stock is near a 10-year low.
The company expects sales to fall by up to 6% this year, according to CNN.
The headcount reduction amounts to around 10% of the company’s workforce, and CEO Mike Roman said it will save the company between $700 million and $900 million in annual pretax costs.
“We’re confident that these are the right actions about positioning us for growth and profitability as we go forward,” Roman said on the earnings call.
Roman said the company will prioritize automotive electrification, personal safety, home improvement, semiconductors, and healthcare, areas the CEO calls “high-growth” markets.
He added that the company will tackle emerging market segments, including climate tech, industrial automation, and sustainable packaging.
3M CFO Monish Patolawala said in the call, “We experienced significant end-market weakness in consumer electronics, shifting consumer spending patterns along with the retailer destocking and mixed industrial end markets.”
“We implemented very aggressive cost controls in the first quarter given the challenging start to the year, including on travel, advertising, external services, and headcount management,” he added.
Not all analysts are sold on the company’s recent cost-cutting measures.
“There have been countless efficiency initiatives here, and little to show for it over the years,” Steve Tusa, an analyst at JPMorgan, said in a note, per Fortune.
“This seems like more of the same.”
