I don't know if there are still many people here who survived layoffs in 2008. I came to this company a little later so I don't know what the layoffs looked like that year, but I see that there are those who say that these layoffs are even worse than they were back then.
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What the difference is that in 2008 the global economy was really bad, here in 2023 the so called leadership is bad, and will continue to make it worse. There is a difference.
Not even close to 2008. In 2008 it sucked, no doubt about it. Big differences:
- The layoff packages/early-retirement offers were much more generous.
- People were asked to volunteer if they wanted. Allowed people close to retirement anyway to leave gracefully and on very good terms while keeping the younger staff around for the future.
- The spending cuts were not to the point of stupidity. Yes in 2008 things were tight.
Since 2018 the cuts have long crossed the point of being counter-productive. 3M would actually make more money if they relaxed a little bit.
- The executive leaders were in general better that their jobs. McNerney was an egotistic sociopath, but the VPs, EVPs, etc below him were mostly competent. I can't say that today. The executive leadership that actually has the skills to run and grow a business have been pushed aside.
Much worse than 2008. Six years in a row now with significant layoffs!
The wsj article is worth the read and is quite blunt. The same themes have been echoed here. The rosey picture being portrayed is not supported by results and is getting old. Winning?
In the words of a large investor, this is some color around why 2023 is much worse than 2008.
https://www.wsj.com/articles/3m-investor-raises-concerns-about-company-leadership-11675370003
I confirm it is worse than 2008. Company slow ending live with regular no ending cuts. I am ready for the end with no fear anymore. First cut is hard but after more than 5 waves you are fully ready.
Do you mean 3M might do a Lehman? Sounds scary
No, not yet. When it get like 2008 believe me, you will know it.
Layoff aristocrat MMM
I been thru the 2008 GFC.
During that time, most companies are doing badly, and 3M is one of them
Right now 2023, many companies are still doing relatively good if compared 5 years ago, but 3M is doing the opposite- it has performed much worse than 5 years ago.
Just look at share price performance vs 5 years ago, and it is self explanatory.
2008 was clear what was happening and why. These rounds seem arbitrary, not necessarily targeting the areas that have fat, and with no end in sight. 2008 was tough but there was transparency and a little empathy. Now job losses are touted as exciting opportunities. It’s much worse and tone-deaf with no end in sight.
I survived 2008 but can say it was a massive bloodletting consistent with many other companies at the time. And it was one and done under george Buckley.
As the other poster says, we have a layoff pattern at 3M these days that reminds me of bill Murray and groundhogs day movie. Wake up and it's the same thing again. These has more to do with a sick company that can't grow its own organic sales due to many years of under investment in research and reliability. This started when 3M went out of its own leadership network and brought in GE jim mcnerney in 2000. Incessant focus on cost cutting started the slide. Like a melting glacier, 3M is loses pieces day after day. Layoffs are only the symptom of a losing playbook
It’s not one year of layoffs, it’s a yearly burning train of layoffs since several years and the process that 3M follows, shows it has no idea to cut this bleed other than cutting headcount and costs. No one can grow their way back from just cutting headcount and costs.. plenty on this site. You can make a folder and share in future HBS case studies, how not to Disband a 100 plus year company ???Death by a thousand cuts.. hang around long enough and you will feel them. Don’t know if the misery is worth it for the ones who remain. So God speed and take your options…yes it’s much more worse than 2008..which was due to market condition. Here LT don’t have a clue how to dig out of this ho-e..