3M said that as the global economy changes after the COVID-19 pandemic, the company is advancing its operating model, streamlining its business, and paying attention to the company’s global development trend. It will apply science to life in new ways to promote sustainability. increase.
On the evening of December 3, local time, 3M announced that it would lay off 2,900 employees worldwide.
According to reports, personal protective equipment manufacturer 3M said on Thursday (3rd) that the company will be reorganized, and this move will affect about 2,900 jobs worldwide.
The announcement stated that the company plans to initiate restructuring actions that will affect all business groups, functions and regions. Therefore, the company expects total pre-tax expenses of 250 million to 300 million U.S. dollars, and 120 to 150 million U.S. dollars in the fourth quarter of 2020. The remaining pre-tax expenses are currently expected to occur mainly in the second half of 2021. 3M expects that through these measures, pre-tax costs of US$200 to 250 million can be saved each year, and pre-tax costs of US$75 million to 100 million in 2021.
Chairman and CEO Mike Roman said: "The COVID-19 pandemic has accelerated the pace of change, disrupted the global end market, and increased the company's need for faster adaptation." "At the same time, we We have seen tremendous opportunities in the new operating model that began at the beginning of the year. As a result, we are taking further actions to streamline operations and enable us to achieve greater growth and productivity as the global market emerges from the pandemic."
He mentioned that in January 2020, 3M launched a new global operating model, which is an important step in the company's transformation. It has changed the way 3M works, made the company more focused on customers and responsiveness, and helped 3M in the pandemic. Leading.
In addition, 3M announced that the company will further enhance its operations and marketing capabilities. In operations, 3M will eliminate redundancy and make better use of analytics to improve efficiency. In marketing, 3M will use its successful experience to use data insights to accelerate global marketing plans and digital interactions with customers. 3M will be more conducive to capitalizing on global market trends in e-commerce, personal safety, healthcare, automotive electrification and home decoration. At the same time, the company plans to abolish the investment priority of slower-growing end markets.
Founded in 1902, 3M is a diversified multinational company with a long history. It 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 is one of Dow Jones’ 30 industrial stocks.
A total of 6,400 layoffs have been planned for three times within 20 months
This is not the first time 3M has laid off employees. In fact, as early as February 2020, when the global epidemic is severe, although masks are sold out of stock, 3M still has to lay off employees.
On January 28, 3M stated that due to the fourth quarter profit and revenue, and the 2020 guidance are not as good as market expectations, and the company is facing environmental protection litigation and other expenses, it plans to lay off 1,500 employees worldwide in 2020, involving all businesses, functions and area.
The company announced that due to the need for restructuring and simplifying global operations, it will further lay off 1,500 employees worldwide, accounting for approximately 1.5% of the existing 96,000 employees. It is estimated that the layoffs will save the company between 110 million and 120 million US dollars before taxes, of which 40 to 50 million US dollars will be saved in 2020. The fourth quarter financial report includes 134 million US dollars of restructuring expenses related to layoffs.
Chairman and CEO Mike Roman said: "We will continue to work for the future, including the launch of a new global operating model. This represents the next stage of our transformation journey. Through our actions, we We are in favorable conditions for improving our performance, resuming growth and successfully achieving 2020."
In fact, this is also part of the company's planned transformation, as well as the second round of global layoffs announced by 3M in less than a year. It is reported that in April 2019, 3M announced the layoffs of 2,000 employees in underperforming business areas such as energy and electronic products.
Net profit and revenue in the first three fiscal quarters still doubled, Q3 revenue exceeded expectations
On October 27, 3M Company announced its financial report for the third quarter of 2020. The financial report showed that 3M’s Q3 sales were 8.35 billion U.S. dollars, compared with 7.99 billion U.S. dollars in the same period last year, an increase of 4.5%. The 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 US$2.43, compared to US$2.72 in the same period last year. The company's operating cash flow is $2.5 billion.
In addition, 3M's profit in the first three fiscal quarters was US$3.9 billion, 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, sales in the healthcare business increased by 25.5% year-on-year, sales in the security and industrial business increased by 6.9% year-on-year, sales in the consumer goods business increased by 5.6% year-on-year, and sales in the transportation and electronic products business decreased by 7.4% year-on-year. In terms of regions, sales in the US 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.
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 $2.9 billion. The healthcare business grew by 12% in October, the consumer goods business grew by 7%, the security and industrial business grew by 4%, and the transportation and electronics business fell by 4%.
Since the second quarter, the market value has soared 228.4 billion yuan
Focusing on the performance of its stock market, 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 then it moved up. As of December 3, 3M's stock price has risen by about 50%, and the total market value has also risen by 35 billion US dollars (about 228.4 billion yuan).
