3M (NYSE:MMM) is trending on social media after the company reported stronger-than-expected first-quarter results but also disclosed that it would eliminate 6,000 jobs. In addition to the 3M layoffs, the company announced that it would restructure its operations.
In early trading, MMM stock rose 1.5%.
3M Layoffs and Restructuring
A global manufacturer of various products, the company stated that the 3M layoffs would affect 6,000 workers in multiple locations. The announcement comes after the company eliminated 2,500 manufacturing positions in January. 3M employs over 90,000 people, 37,000 in the U.S. The company expects to save up to $900 million pre-tax due to its latest layoffs.
According to the company, the job cuts will “affect all functions, businesses, and geographies” while making its supply chain less complicated and eliminating duplicate management positions.
Among the factors that may have led to the layoffs are the company’s commitment to pay for the treatment of water that, according to the Environmental Protection Agency ( ), 3M had contaminated, and the company has been sued over allegedly providing “defective” earplugs to U.S. veterans.
First Quarter Results
The manufacturer’s top line fell 10% versus the same period a year earlier to $7.7 billion but came in $190 million above analysts’ average estimate. Excluding acquisitions and divestments, its sales dropped 5.6% year-over-year (YOY).
The company’s earnings per share came () in at $1.97, versus $2.63 during Q1 of 2022. Analysts, on average, were expecting Q1 EPS of just $1.60. 3M’s Q1 operating cash flow climbed 26% YOY to $1.3 billion.
3M reiterated its 2023 EPS outlook of $8.50-$9.00. Analysts’ average 2023 EPS estimate was $8.61.
The Recent Performance of MMM Stock
MMM’s shares are up 3.35% in the last month, but they have dropped 12.4% so far in 2023.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.