Restructuring Actions

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

NOTE 6. Restructuring Actions

2023 to 2025 Structural Reorganization Actions: In 2023, 3M announced it would undertake structural reorganization actions to reduce the size of the corporate center of the Company, simplify supply chain, streamline 3M’s geographic footprint, reduce layers of management, further align business go-to-market models to customers, and reduce manufacturing roles to align with production volumes. This aggregate initiative, beginning in the first quarter of 2023 and continuing through 2025, is expected (as updated to exclude discontinued operations) to impact approximately 8,000 positions worldwide with an expected pre-tax charge of $700 million to $800 million over that period. During 2023, management approved and committed to undertake associated actions resulting in a 2023 pre-tax charge of $415 million. During 2024, management approved and committed to undertake additional actions under this initiative impacting approximately 1,100 positions and other actions resulting in a pre-tax charge of $187 million. Since its beginning in 2023 through committed 2024 actions, this initiative has impacted approximately 6,800 positions worldwide. Remaining activities related to the restructuring actions approved and committed through 2024 under this initiative are expected to be completed in 2025. 3M expects to commit to further actions under this initiative.

The related restructuring charges for periods presented were recorded in the income (loss) statement as follows:



(Millions)	2024		2023
Cost of sales	$	30	$	89
Selling, general and administrative expenses	142		295
Research, development and related expenses	15		31
Total operating income impact	$	187	$	415

The business segment operating income (loss) impact of these restructuring charges is summarized as follows:












	2024						2023
(Millions)	Employee Related		Asset-Related and Other		Total		Employee Related		Asset-Related and Other		Total
Safety and Industrial	$	72	$	15	$	87	$	89	$	—	$	89
Transportation and Electronics	36		9		45		62		—		62
Consumer	22		13		35		26		—		26
Corporate and unallocated	6		14		20		171		67		238
Total operating expense	$	136	$	51	$	187	$	348	$	67	$	415

Restructuring actions, including cash and non-cash impacts, follow:


(Millions)	Employee-Related		Asset-Related and Other		Total
Expense incurred in 2023	$	348	$	67	$	415
Non-cash changes	—		(67)		(67)
Adjustments	(10)		—		(10)
Cash payments	(239)		—		(239)
Accrued restructuring action balance as of December 31, 2023	99		—		99




Incremental expense (benefit) incurred in 2024	136		51		187
Non-cash changes	—		(51)		(51)
Adjustments	6		—		6
Cash payments	(161)		—		(161)
Accrued restructuring action balance as of December 31, 2024	$	80	$	—	$	80

2023 to 2025 PFAS Exit Actions: As further discussed in Note 19, 3M announced in 2022 that it will exit all PFAS manufacturing by the end of 2025. In 2023, 3M management approved and committed to undertake certain related workforce actions resulting in a pre-tax charge of $64 million primarily impacting cost of sales. During 2024, management approved and committed to undertake additional related workforce actions impacting approximately 650 positions resulting in a pre-tax charge of $66 million primarily impacting cost of sales. These charges are reflected within the Transportation and Electronics business segment. Related cash payments and adjustments to the accrued liability in 2023 were not material. This initiative, beginning in 2023 through committed 2024 actions, has impacted approximately 1,200 positions worldwide. The remaining period of activities related to these approved and committed actions aligns with 3M's PFAS exit timeframe.


(Millions)	Employee-Related
Accrued restructuring action balance as of December 31, 2023	$	60




Expense incurred in 2024	66
Non-cash changes	—
Adjustments	(5)
Cash payments	(35)
Accrued restructuring action balance as of December 31, 2024	$	86

2020 through 2022 Operational/Marketing Capability Restructuring Actions: In 2020, 3M announced it would undertake certain actions to further enhance its operations and marketing capabilities to take advantage of certain global market trends while de-prioritizing investments in slower-growth end markets. The initiative began in 2020 and ended with actions in 2022. In 2022, management approved and committed to undertake the remaining actions under this initiative resulting in a pre-tax charge of $16 million. The accrued restructuring action balance was $72 million at December 31, 2021 and was completed in 2022.

2022 Divestiture-Related Restructuring Actions: During 2022, following the Food Safety Division split-off transaction and combination with Neogen (see Note 4), management approved and committed to undertake certain restructuring actions addressing corporate functional costs across 3M in relation to the magnitude of amounts previously allocated to the divested business. The accrued restructuring action balance was $10 million at December 31, 2022 and was completed in 2023. These actions affected approximately 850 positions worldwide and resulted in a 2022 pre-tax charge of $41 million primarily impacting selling, general and administrative expenses within Corporate and Unallocated.