Thread regarding 3M layoffs

Thanks for linking that video! What a surprise, or not a surprise with management not being transparent about the hard numbers which you have multiple sources of information that show their lies.

Ki-l 3m ventures and other “class 5” - there has been zero return. This should be part of any cap alloc strategy

Warren Buffet commented on share buybacks in his most recent letter to Berkshire Hathaway shareholders, suggesting buybacks are good for all stakeholders if shares are purchased at favorable prices. This makes sense, but the problem with 3M is that the leadership has spent the last many years overpaying for the shares, which only benefits the "selling shareholders and the investment bankers who recommended the foolish purchases". Will there be accountability for this enormously costly error? How many billions of company resources have been squandered purchasing shares at what are now clearly visible as excessive prices? These buybacks basically prove either that exec leadership just doesn't know what's going on, or they were also the selling shareholders and padding their own bank accounts.

"The math isn’t complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices. Just as surely, when a company overpays for repurchases, the continuing shareholders lose. At such times, gains flow only to the selling shareholders and to the friendly, but expensive, investment banker who recommended the foolish purchases." Warren Buffet

I think how Wall Street views "Capital" isn't the same as what 3M calls CapEx. Similar words for different concepts.

Wall Street is basically asking, what is 3M doing with all the money, "Capital", it has? Is it spending it on R&D, buying back shares, expanding factories, paying dividends, getting Varys his seven figure consulting contract (call me Mike), etc, etc.

I agree with OP that T-scale staff should have more budget autonomy, CapEx isn't where it is at. It should come from the Expense side of the budget. Some groups I know have done this in the past, where senior staff have been given funds to work from.

In my career I've had to get approval of $1,000 expenditures at the SVP level, which his fu----g insane. The salaries of the signers cost more than the thing being bought. I could give you an even better story, but it would probably identify me to a smart 3Mer.

Nice thought on giving some ownership on expeditures, but it will never happen as long as leadership believes they are the smartest in the room and the rest of us are dummies that can't make sound business decisions. Case in point is historical plant leadership approving the purchase of ink pens......

3M leadership continues to sing Jack Welch karaoke, and they’re not very good at it. Labor as an expendable cost >> Acquisitions prioritized over organic growth >> Off shoring/out sourcing >> stock buy backs that create short term share price manipulation >> quarterly results being paramount to the overall health and future of a company.
Even the term “playbook” is a a farce existing of mostly word salad.
GE is now a glorified holding company and a shell of its former self. Tell me why 3M’s executives continue to sell this snake oil… Wall Street is certainly recognizing what’s going on.
Get original and authentic 3M and stop trying to imitate Welch voodoo. It ki-led GE, does it have to do the same to 3M?

Inge deserves to be in prison for starting this buyback bullsh-t.

Buybacks have always seemed like they were more about signaling to outside buyers, rather than based on solid financial principles. Any alternative seems more appealing!