Jan. 28 (UPI) -- Industrial conglomerate 3M announced on Tuesday it is laying off 1,500 workers globally in an effort to restructure the company
The company announced the layoffs in its fourth-quarter earnings release in which it reported 2.1 percent increase in sales in the quarter, year on year, and a 27 percent decline in earnings.
The layoffs spanned all business groups, functions and countries the company operates in. 3M said it took a $134 million restructuring charge in the fourth quarter of 2019 and expects annual pre-tax savings of $110 million to $120 million with $40 million to $50 million in 2020.
"3M continues to transform how it operates and build a more customer-driven and streamlined organization for the future," 3M Chairman and CEO Mike Roman said. "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. This is a defining moment in how we run our company and positions 3M for success in the years ahead."
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The company's stock fell 5.72 percent on Tuesday following the news of the layoffs and its earnings report.
Julie Bushman, the company's executive vice president of international operations, also announced her intention to retire effective April 1.
"Throughout her 36 years at 3M, Julie has been an exceptional leader and created tremendous value for our company and shareholders," Roman said. "Julie's leadership has been invaluable throughout her time leading our international team, including playing a critical role in our transformation journey."
