
3M to cut 2K jobs globally, lowers 2019 profit outlook - oldjokes
https://www.reuters.com/article/us-3m-results/3m-to-cut-2000-jobs-globally-lowers-2019-profit-outlook-idUSKCN1S11EI
======
GeneticGenesis
Anecdotally, 3M seem to suffer more than I'd expect from fake products
flooding the market place.

I've lost count of the number of reviews of products I've read which advertise
"3M tape / adhesive" or alike, where it turns out to be something cheap with a
3M logo on it.

Likely a drop in the ocean of 3M's business, but every little helps, I guess.

------
Jordanpomeroy
Given the prodigious use of sticky notes involved in Agile transformation, and
the apparent commitment to 3M’s bottom line, perhaps this is a leading
indicator that agile consulting is in decline? /s

~~~
dfex
I think you're right - that and the security industry convincing the vast
majority NOT to write passwords down on sticky notes..

------
jak92
3M is a staple in American Industry. I wonder if this is foreshadowing
anything broader for the USA.

~~~
jcadam
The housing market is starting to feel like 2007 again. I've been trying to
sell for 6 months. Prices are stagnant (or slowly falling), nobody's buying.

~~~
cronix
Are you sure it's that and not because you've been trying to sell your house
during the off-season? Most of my real-estate friends barely make any, if any,
sales during fall-winter and make most sales in late spring or when kids are
out of school for the summer.

~~~
jcadam
I put this sucker on the market in the fall (bad time, I know). I got a great
job offer I couldn't refuse and had to move.

Unfortunately, I have yet to "realize" my new, higher salary because I'm
paying double for housing until the old place sells. It's a nice house, not
too old, large, pool, etc., in a good neighborhood but it's not getting many
showings.

~~~
toomuchtodo
Have you lowered the price? A house properly priced will move in any market.

~~~
jcadam
I listed it for exactly what it was listed for when I had bought it... about 7
months prior (and at that time it drew multiple offers within 2 weeks on
market).

It really was an unexpected situation.

~~~
toomuchtodo
Markets can change rapidly.

------
ryansmccoy
Typically, when companies are having trouble generating top line growth they
cut costs. And, unfortunately, since people are often the highest component of
costs, they are among the first to be cut.

Also, it makes sense that the amount of people being laid off is at an all
time high, there are more people working now then ever before.

[https://www.statista.com/statistics/192356/number-of-full-
ti...](https://www.statista.com/statistics/192356/number-of-full-time-
employees-in-the-usa-since-1990/)

In other words: "There are three kinds of lies: lies, damned lies, and
statistics."

------
jak92
Does this mean they will move more of their production out of the USA?

~~~
mml
They still have production in the US? they started moving out in the early
80s. My dad was involved in the re-assembly of the pipework for a specialized
glass production facility (specialized lenses etc) physically disassembled &
moved from the US to Xian china in '86\. Even in the early 90's, most of their
mech engineering was contracted out. Surprised they have 2000 employees to lay
off tbh.

~~~
dsfyu404ed
Yes of course they do. They just don't employ that many people to do it. With
the kind of materials they handle there's not much for humans to do except run
machines and more and more of that becomes automated at time goes on. Highly
automated production like that is one of the few kinds of manufacturing it
still makes sense to do in the first world because getting factory set up here
is still cheaper than doing it half way around the world and if you're highly
automated the downside (high labor costs) is not an issue. Of course they
product stuff in China, India, etc. as well. They're a global company with a
diverse portfolio so they have the ability to locate different things in
different places in whichever way makes the most sense.

Whether they have their engineering in the US is a different story (though I'm
sure some of it is).

------
mrfusion
Is 3m still a solid company? I’ve been wanting to invest for ten years but the
pe has always been too high.

~~~
baseten
I think they've been steadily hollowing themselves out just like the every
other American / global company that makes stuff. They don't spend on R&D like
they used to, instead they've tried to acquire new products and technology.

It feels like the culture of innovation they built is lagging, and like for
many American companies losing their way, I wish they could make a case for a
real reinvestment in research with a 10 year payback instead of a next quarter
result. This is anecdotal and I've only worked with one division of 3M in the
past, but i've seen changes in how they support companies downstream. It may
just be how everything is changing everywhere.

They still make good products, and they're consistently very good but always
premium priced.

~~~
dsfyu404ed
Why do research when you can spend the same amount of money just buying small
companies that have researched and innovated?

I'm honestly asking. It doesn't seem like there's any substantial pros to
doing the research in-house for a big company like 3m. A top down directive to
make use of $new_acquisition's tech every now and then seems easier than
fostering a culture of innovation at all times.

~~~
_nedR
I am no expert, but one reason could be that there are certain avenues of
research could only be viable for a company with large resources and funding
not to mention patience (An example is pharma companies that spends billions
and a decade developing a new drug).

~~~
pgwhalen
It’s funny that you say that about pharmas - I’m not terribly informed but
I’ve sure read a lot recently about big pharma following that model quite a
lot actually.

------
Axsuul
Did anyone read the article at all? It cites dismal performance of the Chinese
market. If anything, it's an indicator that China's growth is slowing, not the
U.S.

------
fakename
Better than 2K cutting 3m jobs.

~~~
CamelCaseName
That would indeed be concerning... given that they (2K Games) only have ~4,500
employees.

~~~
btmiller
However, the reverse is not true: 3M doesn't employ 3 million people (nor
2,998,000 ;))

~~~
okmokmz
3M cutting 2K jobs is the reverse of 2K cutting 3M jobs...

~~~
webline_devine
What is the reflective property

------
terryschiavo22
I struggle to see how this can be seen as a bellwether of the economy. 3M
sells things that should be reasonably recession-proof: people don't stop
buying scotch tape in hard times.

~~~
mml
Pretty sure scotch tape (or any other consumer product) is a tiny fraction of
their business. Their main gig is selling industrial solvents, additives,
adhesives & abrasives to mining & manufacturing concerns.

Building up production facilities for others & the engineering involved in all
that is a lucrative line as well.

Patent licensing too.

------
bjourne
How can this happen? I thought Trump's tax cuts were guaranteeing prosperity
for all?

