Despite soaring demand for their products (anti-virus masks are sold out worldwide), shares of 3M are slipping after the company will slash 1,500 jobs in a global restructuring program as its auto parts and electronics segments come under pressure amid slowing global growth.
In a statement, the company said the restructuring program would span across "all business groups, functions, and geographies." The company expects pretax savings of $110 to $120 million from the changes.
The company reduced its profit forecast several times last year as the global synchronized slowdown showed limited signs of abating, along with continued deceleration in China and imploding automotive and electronics markets.
CEO Mike Roman said the restructuring would create a soft-landing for the company to capitalize on a rebound.
Roman said 3M would "continue to manage challenges in certain key end markets." He added that today's results were in line with the company's expectations.
The coronavirus could be a massive boost for 3M Medical, as their masks are in high demand across the world.
Still, China shutting down cities and factories across industrial zones could spark a more pronounced slowdown for the global economy in the first quarter, ultimately weighing on aggregate future 3M earnings.