3M Company (NYSE:MMM) earnings for the fourth quarter includes an update to the company’s structure.
According to a 3M news release, the company is planning to realign its business. This will have it lowering from five business groups to four. The business group getting the ax is its International Operations organization.
Due to this change, 3M Company will be reducing its total number of employees by roughly 1,500 positions. The company says this downsizing will cover all business groups, functions and geographies.
3M Company notes that it suffered a $134 million restructuring charge during the fourth quarter of 2019 due to this change. However, it plans to see annual pre-tax savings of $110 million to $120 million afterward. That will start with savings of $40 million to $50 million in 2020.
Alongside this 3M Company news is Julie Bushman retiring. Bushman is the Executive Vice President of International Operations at the company. Her retirement will go into effect on April 1, 2020.
Mike Roman, Chairman and CEO, says this about the changes.
“3M continues to transform how it operates and build a more customer-driven and streamlined organization for the future. The latest phase of our transformation journey is designed to improve growth and operational efficiency, and will enable us to create even more value for our customers and shareholders.”
3M Company earnings for the quarter has it bringing in adjusted earnings per share of $2.15 on revenue of $8.11 billion. For comparison, Wall Street was looking for an adjusted EPS of $2.10 on revenue of $8.12 billion.
MMM stock was down 5.58% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.