Can “Mask Giant” 3M hold on? Announced nearly 3,000 layoffs worldwide.
3M said it is advancing its plans as the global economy changes in the wake of the COVID-19 pandemic. Operating models, streamlining operations, and focusing on the company’s global development trends will apply science to life in new ways to drive sustainable growth.
3M announced global layoffs of nearly 3,000 people
On the evening of December 3, local time, 3M The company announced 2,900 layoffs worldwide. According to Reuters, personal protective equipment manufacturer 3M said on Thursday (3rd) that the company will restructure, a move that will affect approximately 2,900 jobs worldwide.
3M announced in an announcement that the company plans to initiate restructuring actions that will affect all business groups, functions and regions. As a result, the company expects total pre-tax charges to be $250 million to $300 million, compared with $120 million to $150 million for the fourth quarter of 2020. The remaining pre-tax charges are currently expected to be incurred primarily in the second half of 2021. 3M expects to save $200 to $250 million in pre-tax costs annually through these measures, and $75 million to $100 million in pre-tax costs in 2021.
It is worth mentioning that the restructuring is expected to affect approximately 2,900 positions worldwide.
3M Chairman and CEO Mike Roman said: “The COVID-19 pandemic has accelerated the pace of change, disrupted end markets around the world and increased The need for companies to adapt faster.” “At the same time, we see significant opportunities in the new operating model we launched at the beginning of the year. As a result, we are taking further actions to streamline operations and position us to emerge from the pandemic in global markets achieve greater growth and productivity at the same time.”
He mentioned that in January 2020, 3M launched a new global operating model, which is an important step in the company’s transformation. Changed the way 3M works, making the company more customer-focused and responsive, helping 3M stay ahead of the pandemic.
In addition, 3M announced that the company will further enhance its operations and marketing capabilities. In operations, 3M will eliminate redundancies and make better use of analytics to improve efficiency. On the marketing front, 3M will leverage its successful experience, leveraging data insights to accelerate global marketing initiatives and digitally engage with customers. 3M will be better positioned to capitalize on global market trends in e-commerce, personal safety, healthcare, vehicle electrification and home furnishings. At the same time, the company plans to deprioritize investment in slower-growing end markets.
It is reported that 3M Company is an American company founded in 1902. It is a diversified multinational enterprise with a long history and is known for its wide range of products and innovation. Since its establishment, it has developed and produced as many as 50,000 high-quality products, serving many fields such as communications, transportation, industry, automobiles, aerospace, medical care, construction, and daily consumption. 3M Company is one of the 30 industrial stocks on the Dow Jones.
It has been “downsized” three times in 20 months, with a total of 6,400 planned layoffs
This is not the first time 3M has laid off employees. In fact, as early as February 2020, during the severe period of the global epidemic, although masks were sold out, 3M still had to lay off employees.
The American industrial giant 3M announced its financial report on January 28. At the same time, it stated that due to the fourth quarter profit and revenue, and 2020 guidance were not as good as market expectations, and the company is facing environmental protection Due to litigation and other expenses, it plans to lay off 1,500 people worldwide in 2020, involving all businesses, functions and regions.
The company announced that due to the need to reorganize and simplify global operations, it will further lay off 1,500 people worldwide, accounting for approximately 1.5% of the existing 96,000 employees. The layoffs are expected to save the company between US$110 million and US$120 million before tax annually, including US$40 million to US$50 million in 2020. The fourth-quarter financial report includes US$134 million in restructuring costs related to layoffs.
3M Chairman and CEO Mike Roman said: “We will continue to work hard for the future, including the launch of a new global operating model that represents our The next stage of our transformation journey. Through our actions, we are well-positioned to improve our performance, resume growth and successfully deliver in 2020.”
This is also the company plan Part of the transformation is also the second round of global layoffs announced by 3M in less than a year. It is reported that in April 2019, 3M announced that it would lay off 2,000 people in underperforming business areas such as energy and electronic products.
Net profit and revenue in the first three fiscal quarters still fell, and Q3 revenue exceeded expectations
On October 27, 3M Company The financial report for the third quarter of 2020 was announced. The financial report showed that 3M’s Q3 sales were US$8.35 billion, compared with US$7.991 billion in the same period last year, a year-on-year increase of 4.5%. Net profit attributable to the company was US$1.413 billion, compared with US$1.583 billion in the same period last year, a year-on-year decrease of 10.74%. Diluted earnings per share were $2.43, compared with $2.72 in the same period last year. The company’s operating cash flow was $2.5 billion.
In addition, 3M’s profit in the first three fiscal quarters was 39billion US dollars, a year-on-year decrease of 25.26%; total operating income was US$23.6 billion, a year-on-year decrease of 28.0%.
In terms of business sectors, the sales of the medical care business increased by 25.5% year-on-year, the sales of the safety and industrial business increased by 6.9% year-on-year, the sales of the consumer goods business increased by 5.6% year-on-year, and the sales of the transportation business increased by 5.6% year-on-year. Sales in the transportation and electronics business fell 7.4% year-on-year. In terms of regions, sales in the United States increased by 7.7% year-on-year, sales in the EMEA (Europe, Middle East and Africa) region increased by 4.4% year-on-year, and sales in the Asia-Pacific region decreased by 0.6% year-on-year.
3M Chairman and CEO Mike Roman said, “While economic uncertainty and challenges from the COVID-19 epidemic remain, our business has achieved organic growth. Positive growth, the performance of the four major business units and all global regions continues to improve. In addition, we maintained strong cash flow this quarter, greatly controlled costs, and further improved our financial position.”
“We will continue to promote 3M’s transformation and ensure that we can achieve strong performance growth as the end market recovers.” Mike Roman added, “We will invest in areas with strong demand and actively manage costs. structure, and continue to promote innovation to meet customer needs and global market trends.”
On November 13, the company announced sales data for October. Data show that the company’s total sales in October increased by 3% year-on-year to US$2.9 billion. Healthcare grew 12% in October, consumer products grew 7%, security and industrials grew 4%, and transportation and electronics fell 4%.
The market value has soared by 228.4 billion yuan since the second quarter, and it is expected to produce 2 billion N95 masks this year
Focusing on its stock market performance, 3M’s stock price experienced a sharp decline in the first quarter. On March 24, the stock price hit a new low of $110.94, but it subsequently rose in shock. As of December 3, 3M’s stock price has risen by about 50%, and its total market value has also increased by US$35 billion (approximately RMB 228.4 billion).
It is reported that Royal Bank of Canada recently lowered the target price of 3M Company from US$178 to US$177.
Previously, Mike Roman said that as the epidemic in some parts of the world intensifies again, the company is continuing to accelerate the production of N95 masks. He said: “We are increasing our production capacity. We are producing more N95 respirators than ever before, and we will continue to add some production capacity before the end of the year and even into next year.” Roman said that 3M expects to produce 2 billion N95 masks this year , about half of which will be in the United States. </p
