Thread regarding 3M layoffs

A reckoning for 3M

If you’re not familiar with Jim McNerney (3M CEO 2001-2005), watch the Netflix documentary “Freefall: A reckoning for Boeing”. Bill Brown is using the same playbook as McNerney to inflate short-term stock value by cutting experienced talent, capping budgets, and engineering a stressful workplace. They both follow Jack Welch style of management that thrives on promoting a toxic, fear-based corporate culture.

McNerney squeezed profit margins out of existing operations at Boeing and that not only destroyed the company - it ki-led hundreds of people via air disasters. We’re seeing the start of this at 3M, but we won’t see the full consequences of Bill Brown’s decisions until much later.


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| 58 views | | 11 replies (last October 8) | Reply
Post ID: @OP+1m3rbp5d2

11 replies (most recent on top)

@1g2
And MK was Tech Director with BA as VP …. Former is still making millions and BA is pushed out for having reviewed Aero acquisition…???

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Post ID: @1h1+1m3rbp5d2

Roman (the Scout) has left a legacy of destroying the shareholders value from $260 to $80. His feat is unparalleled.

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Post ID: @1gq+1m3rbp5d2

@xv Except Roman was in Charge of Aquisitions when Aero was acquired. He ignored the warning signs of long term liability for short term cash. As shortsighted a leader that looks at a lease and says it is value added.

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Post ID: @1g2+1m3rbp5d2

@bx I might get flack for saying this, but while a lot of the company downfall did occur under Roman, many of the things that lead to the crash of the company occured prior to Roman's tenure and actually, the company not filing for bankruptcy was/is impressive. The two big lawsuits that 3M made settlements on; the combat ear plugs, and forever chemicals were massive. Both were results of decisions made before Roman's time as CEO and by all means should have bankrupted the company, but as close as it got, they actually didn't. I'm not saying Roman was perfect, but a lot of the downfall that occured was due to those two massive lawsuit settlements that ultimately were caused by decisions prior to Roman's tenure. Not filling for bankruptcy, if you really stop and think about it and put the scale of things into perspective, is actually pretty impressive.

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Post ID: @xv+1m3rbp5d2

BB is 63 this year. He has 2 more years to milk the cash cow. For sure he doesn't care about what's growth beyond.

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Post ID: @mh+1m3rbp5d2

@bn Bill will act in his own best interest. The comments about a class 5 NPI are spot on. Execs since at least McNearny have not cared about building a company at all. Same reason we have not fully implemented SAP. Huge cost to finish and it won't benefit the stock price short term. An exec looks a lot a long term project and asks Why would I do that, it doesn't help ME.

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Post ID: @h2+1m3rbp5d2

Jim Cramer lost all credibility in 2008 by insisting that the artificially high oil and gas prices had nothing to do with speculation, it was “all about supply and demand”, as major investment firms bought up oil and gasoline to cover for their losses in easy mortgage money.

Cramer let the cat out of his bag as the gas and oil market was collapsing and Goldman Sachs was forced to bail out of something they had no business being in. Cramer’s words? “EVERYONE IS SELLING”. I guess demand dropped for Jimmy.

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Post ID: @d1+1m3rbp5d2

@bx Roman did the spectacular by crashing the shareholder value down to $80+
His feat is unparalleled.

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Post ID: @ch+1m3rbp5d2

@bn
Totally agree. Inge did nothing but appeared on Jim Cramer show with a Royal look, merged divisions, bought back shares to hype the value to $250, made a lot of money and left. Did nothing for growth.
Then came the worst Roman era … down the drain

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Post ID: @bx+1m3rbp5d2

I don’t disagree with your forecast of the impact/results… However this trend was started under Inge and BT, accelerated with A3M and made perfectly ripe for the consultant leadership to act on. They will all leave with their bonuses before the real impact is felt. I believe Bill and team are acting in alignment with their compensation. And if you look at the share price it seems they are delivering, all be it temporarily. Old 3M is being wiped away by short term incentives and consultants. Real NPI, class 5, takes 20 years to become an economic powerhouse. There is no incentives at the executive level fo invest in it.

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Post ID: @bn+1m3rbp5d2

There is a very good podcast by American Scandal called "Boeing" that also highlights McNerney's decision making related to the Boeing crisis.

https://podcasts.apple.com/us/podcast/boeing-point-of-failure/id1435516849?i=1000679421172

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Post ID: @be+1m3rbp5d2

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