Solventum, the 3M healthcare spinoff, eliminated 800 positions as part of a restructuring strategy to help fuel growth.
CEO Bryan Hanson, in an investor day presentation last week, said the restructuring plan would save the company $120 million annually and require a one-time cost of $120 million. The plan, called the “Solventum Way,” was announced in December.
“We wanted to shift where we were focused from a team perspective,” Hanson said of the job cuts, “and we will continue to focus on optimizing our organizational structure to ensure that we're driving margin, not just revenue growth.”
Executives did not go into detail about the job eliminations during the investor event. Solventum did not comment on questions from MedTech Dive regarding where in the U.S. or globally the cuts took place and whether they were connected to facility closures.
The Minnesota Star Tribune reported Thursday that 110 positions were eliminated in Minnesota, where Solventum is headquartered. Minnesota’s Department of Employment and Economic Development said in an email to MedTech Dive that the company has not yet filed a Worker Adjustment and Retraining Notification letter with the state.
“Since Solventum spun from 3M Health Care, the number of employees has continued – and will continue – to grow,” a company spokesperson wrote in an email.
Solventum spun out of 3M last April. The company reported $8.25 billion of revenue in 2024, representing year-over-year growth of less than 1%. Its full-year results include a carve-out for the first quarter plus the time as a stand-alone company beginning April 1.
Solventum has been saddled with billions of dollars of debt since separating from 3M. As of Dec. 31, the company still had $7.81 billion in long-term debt. Solventum sold off its purification and filtration business to Thermo Fisher last month for $4.1 billion, and will use the $3.4 billion in net proceeds primarily to pay down debt.
