3M Restructures & Cuts 1,500 Positions; Ramps up Mask Production for Coronavirus

3M is restructuring its organization in a move that reduces approximately 1,500 positions across all business groups, functions and geographies.

It's also ramping up its production of face masks in response to the coronavirus. 

Its new global operating model, implemented on Jan. 1, further aligns its four business groups – Safety & Industrial, Transportation & Electronics, Health Care, and Consumer – with the company’s customers and go-to-market models. In the new model, 3M’s business groups now have full responsibility for all facets of strategy, portfolio optimization and resource prioritization across their entire global operations.

Under the prior model, area and country teams – which comprised 3M’s International Operations organization – were responsible for setting priorities in their regions. All of 3M’s international employees now report into the business groups and functions they are part of, and 3M no longer has an International Operations organization.

3M’s new business group-led operating model is designed to create several benefits to its customers and shareholders:

• Driving more accountability to its business groups to serve global and local customers;
• Enabling stronger customer insights to drive more powerful innovation;
• Empowering employees to make faster decisions and improve speed and service to customers;
• Streamlining the organization and simplifying reporting lines; and
• Leveraging strengths across markets while maintaining strong local capabilities and expertise.

To support 3M’s new operating model and ensure cross-functional efficiency, the company has made enhancements to its business group support functions. These include:

• The consolidation of manufacturing, supply chain and customer operations into a new Enterprise Operations organization focused on optimizing the customer experience end-to-end;
• A newly formed global Corporate Affairs organization focused on advancing and protecting the company’s brand and reputation in all areas of the world; and
• Realignment of all existing corporate functions to drive more effective operations across geographies.

Regarding the coronavirus, the company is ramping up production at its manufacturing facilities around the world, including in the U.S., Asia and Europe.

In China and elsewhere, it’s working with customers, distributors, governments and medical officials to deliver supplies.

The company said it’s notified 3M authorized distributors that it’s prioritizing orders to help serve its base business — including hospitals — due to high global demand.

In a statement, the company said: “As a leader in personal protective equipment (PPE) for healthcare professionals, workers and the public, 3M has not changed the prices we charge for 3M respirators as a result of the outbreak; however, we cannot control the prices other dealers or retailers charge for 3M respirators.”