MAY 3, 2023 — RESTRUCTURING CLAIMS 1,100 HEADQUARTERS EMPLOYEES
Continuing with their restructuring plans, the company is set to terminate 1,100 headquarters employees, including some remote workers who report to HQ.
APRIL 26, 2023 — SECOND ROUND TARGETS 6,000 EMPLOYEES
Continuing with its massive restructuring plan, 3M has announced a second round of layoffs.
SEC filing…
3M Announces Restructuring Actions
3M is taking restructuring actions that are intended to make 3M stronger, leaner and more focused. The structural reorganization will reduce the size of the corporate center of the company, simplify the supply chain, streamline 3M’s geographic footprint, reduce layers of management, and further align business go-to-market models to customers. These restructuring actions are expected to affect all functions, businesses, and geographies and will impact approximately 6,000 positions globally, in addition to the reduction of 2,500 global manufacturing roles announced in January 2023. 3M anticipates annual pre-tax savings of $700 million to $900 million upon completion of these actions.
These actions are expected to meaningfully reduce costs and drive long-term improvement in margins and cash flow while enabling a more efficient and effective structure for driving long-term growth. The company will continue to focus its commercial efforts in high-growth markets, including automotive electrification, home improvement, personal safety, electronics, and health care. In addition, 3M will prioritize emerging growth areas such as climate technology, sustainable packaging, industrial automation, semiconductors, and next-generation consumer electronics.
JANUARY 24, 2023 — 2,500 EMPLOYEES TARGETED FOR LAYOFFS
3M has announced a major reduction in force, impacting 2,500 manufacturing jobs worldwide as it looks to align itself with adjusted production volumes.
CEO Mike Roman…
"3M continues to focus on delivering for customers and shareholders in a challenging economic environment. The slower-than-expected growth was due to rapid declines in consumer-facing markets – a dynamic that accelerated in December – along with significant slowing in China due to COVID-related disruptions. As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels.
"In a year impacted by inflation, global conflicts, and economic softening, our team took actions to position 3M for future success. We managed our portfolio – including the divestiture of our Food Safety business, planned spin-off of our Health Care business, and commitment to exit PFAS manufacturing by the end of 2025 – while continuing to work towards a mediated resolution for Combat Arms litigation. We invested in growth and productivity while following through on sustainability commitments.”
"We expect macroeconomic challenges to persist in 2023. Our focus is executing the actions we initiated in 2022 and delivering the best performance for customers and shareholders. Based on what we see in our end markets, we will reduce approximately 2,500 global manufacturing roles – a necessary decision to align with adjusted production volumes."
JULY 28, 2022 — 3M TO SPIN OFF HEALTHCARE BUSINESS
3M has announced plans to spin off its $8.6 billion health care business, which accounts for a quarter of 3M's revenue, to boost profitability.
According to CEO Mike Roman, "It's a great opportunity for both businesses. Actively managing our portfolio really helps us complement the value we create with our innovation and the businesses that we build."
"There are a lot of questions about next steps and how we go forward, What happens to employees, the name of the business, the locations and the buildings for those businesses will be decided over the next 15 to 18 months."
"We have positioned health care to be successful as a stand-alone enterprise. Both companies will sharpen their focus to continue investing and winning in global end markets and have greater flexibility to strategically deploy capital, drive innovation and accelerate growth."
Employees beware — a round of cost-cutting and personnel cutbacks traditionally follows divestitures.
DECEMBER 3, 2020 — 3M ANNOUNCES ADDITIONAL RESTRUCTURING WITH 2,900 LAYOFFS GLOBALLY
It is unknown how many U.S. employees will be affected as a company spokesperson claims, “The COVID-19 pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster. 3M said the restructuring actions would allow it to take advantage of global market trends in e-commerce, health care, automotive electrification and home improvement.”
AUGUST 12, 2020 — RESTRUCTURING CONTINUES, ANOTHER 1700 EMPLOYEE LAYOFFS
The company has announced that it would continue its restructuring and reduce its headcount by an additional 1,700 jobs after the sale of the company’s drug delivery business to Altaris Capital Partners for $650 million which saw a reduction of 1,300 corporate support positions from the company’s payroll.
JANUARY 28, 2020 — 3M ELABORATES ON RESTRUCTURING
In reporting 4th quarter (2019) results, 3M chairman and chief executive officer Mike Roman noted, “We also continue to build for the future, including the launch of our new global operating model which represents the next phase of our transformation journey. As a result of our actions, we are well positioned to improve our performance, return to growth and deliver a successful 2020.
As a result of these actions, 3M initiated a restructuring that will reduce approximately 1,500 positions, spanning all business groups, functions and geographies.”
For those wishing to read the details: 3M Accelerates Pace of Transformation Journey.
APRIL 26, 2019 — BAD NEWS AS COMPANY POSTS POOR QUARTERLY RESULTS AND ANNOUNCES MASS LAYOFFS.
According to 3M CEO Mike Roman, “The first quarter was a disappointing start to the year for 3M. We continued to face slowing conditions in key end markets which impacted both organic growth and margins, and our operational execution also fell short of the expectations we have for ourselves. As a result, we have stepped up additional actions – including restructuring – to drive productivity, reduce costs, and increase cash flow as we manage through challenges in some of our end markets.”
Reflecting a slower than expected 2019, 3M has initiated restructuring and other actions that will result in an expected reduction of 2,000 positions worldwide with an estimated annual pre-tax savings range of $225 million to $250 million, with $100 million in the remainder of 2019. The company anticipates a pre-tax charge in 2019 of approximately $150 million, or $0.20 per share. These actions will span all business groups, functions and geographies, with emphasis on corporate structure and underperforming areas of the portfolio.”
Original Post…
As part of a enterprise-wide restructuring and cost-reduction plan, Maplewood, Minnesota-based 3M Corporation, the iconic multinational conglomerate, has announced that it will be closing its filtration products plant in Eagan, Minnesota. The company will lay of approximately 96 workers in March and April 2019 as operations are spun-down. This should come as no surprise to employees since the restructuring plan was announced in December 2017 and the Eagan plant closed in 2018.
According to a 3M spokesperson, “the decision to close the plant stemmed from the realignment of 3M's Separation and Purification Sciences business that would allow investment in other ‘key growth segments’ that include types of filtration products other than those made in Eagan.” It is believed that the company has decided to shift its resources and attention from commercial air filtration and refrigeration filtration products to higher growth and margin products such as those used in the food, beverage, and medical industries.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?