UPDATE: 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.”
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?