Last year, with the arrival of the new crown epidemic, masks were not only difficult to obtain, but also soared from a few cents to dozens of yuan. N95 masks have appeared in hundreds of cases. As a giant in the mask industry -
3M announced nearly 300 job cuts worldwide On the evening of December 3, local time, 3M announced 2900 job cuts worldwide. 3M said that with the global economic changes following the popularity of covid-19, the company is promoting its business 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 sustainable growth. "The covid-19 epidemic has accelerated the pace of change, disrupted the global end market and increased the need for companies to adapt faster," said Mike Roman, 3M's chairman and chief executive "At the same time, we see great opportunities in the new business model that started at the beginning of the year. As a result, we are taking further actions to simplify operations so that we can achieve greater growth and productivity as global markets emerge from the pandemic. "
He mentioned that in January 2020, 3M launched a new global operation mode, which was an important step in the transformation of the company. It changed the way 3M works, made the company more focused on customers and response ability, and helped 3m to take the lead in the popularity.
In addition, 3M announced that the company will further enhance its operational and marketing capabilities. In operation, 3M will eliminate redundancy and make better use of analysis to improve efficiency. In terms of marketing, 3M will use its successful experience and data insight to accelerate global marketing plans and digital interaction with customers. 3M will be more conducive to taking advantage of global market trends in e-commerce, personal safety, healthcare, automotive electrification and home furnishing. At the same time, the company plans to eliminate investment priorities in slower growing end markets.
It is reported that 3M company is an American enterprise, established in 1902. It is a multi-national enterprise with a long history. It is famous for its variety of products and innovation. Since its establishment, it has developed and produced up to 50000 kinds of high-quality products, serving many fields such as communication, transportation, industry, automobile, aerospace, medical treatment, construction and daily consumption. 3M is one of Dow Jones' 30 industrial stocks.
In the past 20 months, 6400 people have been laid off This is not 3M's first layoff. In fact, as early as February 2020, when the global epidemic is severe, although the masks are sold out of stock, 3M company will still lay off employees.
3M, an American industrial giant, announced its financial report on January 28. It also said that it planned to lay off 1500 employees worldwide in 2020, involving all businesses, functions and regions, because the fourth quarter profit, revenue and 2020 guidelines were lower than market expectations, and the company was facing environmental litigation and other expenses.
The company announced that in order to restructure and simplify its global operations, it will further lay off 1500 employees worldwide, about 1.5% of its 96000 employees. It is estimated that the layoff will save the company $110 million to $120 million before tax, of which $40 million to $50 million will be saved in 2020. The fourth quarter financial report includes $134 million of restructuring costs related to layoffs.
"We will continue to work for the future, including the launch of a new global business model, which represents the next phase of our transformation journey," said Mike Roman, 3M's chairman and chief executive. Through our actions, we are in a good position to improve our performance, restore growth and successfully achieve 2020. "
In fact, this is part of the company's planned transformation and 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 2000 employees in poor performing business areas such as energy and electronic products.
Q3's revenue exceeded expectations, difficult to stop the wave of layoffs On October 27, 3M announced its third quarter 2020 financial report, which showed that the sales volume of Q3 of 3M company was 8.350 billion US dollars, compared with 7.991 billion US dollars in the same period of last year, with a year-on-year increase of 4.5%. The net profit attributable to the company was 1.413 billion US dollars, which was 1.583 billion US dollars in the same period of last year, with a year-on-year decrease of 10.74%. Diluted earnings per share were $2.43, up from $2.72 a year earlier. The company's operating cash flow is $2.5 billion.
In addition, 3M's profit in the first three fiscal quarters was $3.9 billion, a year-on-year decrease of 25.26%; and its total operating revenue was $23.6 billion, a year-on-year decrease of 28.0%.
In terms of business sectors, the sales volume of medical care business increased by 25.5%, that of safety and industrial business increased by 6.9%, that of consumer goods business increased by 5.6%, and that of transportation and electronic products decreased by 7.4%. By region, sales in the United States increased by 7.7%, EMEA (Europe, Middle East and Africa) by 4.4% and Asia Pacific by 0.6%.
Mike Roman, chairman and CEO of 3M, said, "although economic uncertainty and challenges from the new epidemic still exist, our business has achieved positive endogenous growth, and the performance of our four divisions and regions around the world continues to improve. In addition, we have maintained strong cash flow this quarter, greatly controlling costs and further improving our financial position. "
"We will continue to drive the transformation of 3M and ensure that we can achieve strong performance growth as the end market recovers." Mike Roman added, "we will invest in areas of strong demand, actively manage cost structures, and continue to drive innovation to meet customer needs and global market trends."
On November 13, the company released its October sales figures. The company's total sales in October rose 3% year-on-year to $2.9 billion, according to data. In October, healthcare business grew by 12%, consumer goods business increased by 7%, security and industrial business increased by 4%, and transportation and electronic products business decreased by 4%.
It is estimated that 2 billion N95 masks will be produced this year Focusing on its stock market performance, 3M's share price experienced a sharp decline in the first quarter, reaching a new low of $110.94 on March 24, but then rose in shock. As of December 3, 3M's share price has risen by about 50%, and its total market value has also soared by 35 billion US dollars (about 228.4 billion yuan).
It is reported that the Royal Bank of Canada recently lowered the target price of 3M company from US $178 to US $177.
Previously, Mike Roman has said that the company is continuing to accelerate the production of N95 masks as the epidemic situation in parts of the world intensifies again. "We are increasing capacity," he said. We produce more N95 respirators than ever before, and we will continue to increase some capacity by the end of the year and even next year. " According to Roman, 3M is expected to produce two billion N95 masks this year, about half of which will be in the United States.
