3M, Mankato, Minn. announced that it will restructure and cut 2 percent of its global workforce—a total of 1,500 jobs worldwide.
This announcement came after the company reported disappointing sales and earnings and told investors to expect smaller earnings this year than the company originally had planned, according to CNN.
CNN further reported that the strength of the U.S. dollar resulted in reduced sales overseas. Shares of 3M were down 1 percent in premarket trading.
MarketWatch reported that 3M’s third-quarter profits exceeded expectations, but overall sales were lower than it had hoped. Earnings for the quarter ended Sept. 30 totaled $1.3 billion, and revenue fell 5.2 percent to $7.71 billion, after currency movements reduced sales by 7.4 percent.
3M said cutting jobs is part of a restructuring plan to cut costs by $130 million next year, and the cuts will mostly be in the U.S.
“We continue to take actions to strengthen our portfolio, increase our scientific edge through research and development, and transform our business process through a new global ERP system,” said Inge G. Thulin, chairman, president and CEO of 3M, in a statement. “We are building a stronger, more streamlined and more focused company that can compete and win for years to come.”
For more information on 3M, visit www.3M.com.
