Tuesday morning at the same time as the new CEO meeting SIBG leadership met and discussed things. Someone was foolish enough to forward an email follow-up from this meeting which stated We need a 10% year over year TVOS/labor hour improvement yielding in a 50% reduction in headcount and a slide that state plants need to understand we need to reduce a further 2500 people by end of 2026 (not sure if this number is just SIBG or total corp)
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There is no problem that a few more sales won’t solve. You cannot cut your way out; I’ve been saying this for years - falls on deaf ears.
Mikey & gang have already exhausted most of the R&D resources…. Bill might have to start from scratch again if he truly believe in R&D
Is there really an appetite for Class 4 or Class 5 projects anymore? Those take years to make money. So many brilliant people laid off, quit, working for others now. How many are left?
Most of the scientists have resigned, retired or laid off. Corporate regional labs have been downsize or closed. Tech service travels have been curb. It would be interesting to see how R&D would be revived without any major impact to P&L that might upset Wall Street. R&D ideas take years to nurture!
@Varys,, yes my friend, the plan's become clearer, the company has already decided on road to complete failure, the litigation is only going to pick up a pace to descruction. The new C.E.O. is there for to take MR's name out of the signing out signature. I almost fell out of my chair when i heard plans for investment into R&D, anyway it is the final countdown.
Mfg plant morale is at rock bottom. There's no incentive to work hard. Safety incidents are recurring. Nobody bother anymore. All the safety first are just Lip service.
All these manufacutring reductions mean nothing if there are no plans to invest for growth. There is only so much they can cut and only so long that they can run on a skeleton crew. If they don't have TRUE Class 4 and 5 projects turning into new product launches by the time manufacturing goes into the sh----r, this company is dead. It is very sad...
Great post, thanks for sharing. My reaction:
- 50% reduction in staff per dollar in 10 years is INSANE. Whoever set that goal has lost their mind. They are building a model of flat sales and losing 5% staff to layoffs and turnover per year. This is literally Neutron Jack's playbook.
- Trying to automate the way to that target will require a ton of MT and Engineering staff, oh wait they just gutted SIBG's MT team.... Houston, we have a problem.
- Saying they will 'copy and paste' projects suggests a fundamental lack of understanding of the manufacturing processes. Apart from box and pallet packaging very few of SIBG's manufacturing operations are close enough to repeat significant projects so simply. They are not going to cut 50% labor in packaging...
Overall, this email represents a delusional plan doomed to failure.
TVOS = Transfer Value Of Sales
“The email” should be taken down, not for public consumption. Be careful about what you post.
As long as the GE rat Money Monish is here there will be layoffs.
Et voilà au revoir petit collaborateur c'est le dashboard qui a décidé mais c'est pas moi évidemment haha tellement plus facile.
This is part of the plan disclosed in the 10K SEC filing. They specifically mention that the plan is to eliminate 8500 by 2026 (I think that was the year) and we cut 6000 last year...thus 2500 cited here. That is corporate wide. The recent 250 from SIBG is more from this as regular attrition apparently was not high enough for these company killers. You can look up the 10K filing for the exact wording and timing.
OP
@OP+1ryZ1w9F
Thanks. I'm starting to be more of a believer. I put one of your paragraphs into an AI tool that assesses likelyhood of being AI generated versus human generated. The paragraph received a 95% not AI generated.
I have a lot more time pre-SAP than post-SAP. Pre-SAP we had more discussions on total value of production not "TVOS". Value of production numbers were readily available. I do not know if that part has shifted after SAP.
Well you can bet 3M will have the post with the "email" information taken down. Even if it isn't internal communication.
As requested since this is fake news. The statement of 2500 by 2026 year end is part of a slide snip on the email. Paragraph is below. TVOS = Total value of sales.
Team – one key message that we did not have time to share during the leadership connection is our current capital status. As you are all aware, our manufacturing group spends an abnormally low percentage of capital on cost reduction and automation, as this is a result of the way projects were prioritized in the past. You can see in the tracking metric below that we have only reached 15% last year and have an aggressive ramp up plan to spend 54% in 2026 (versus an expected target of 60%). To help us meet this objective, the Engineering and MT group has developed an automation approach that will help us to take advantage of scale driving faster improvements. To execute this huge (and exciting) ramp up, we are asking you for two follow up items for every site:
• Bring your best practices forward to share what has been done in your sites to help replicate or “copy and paste” projects that we know work. These will be part of our go-fast plan.
• Start thinking bigger picture about key labor challenges in your sites where investment can translate into large headcount reductions.
As we discussed during the OP reviews, our normal operating procedure should be a labor efficiency roadmap that shows 10% year over year improvement (TVOS/labor hour or similar measure) that yields a 50% reduction in headcount (or net 5% headcount reductions year over year). For most sites, this reduction helps to manage turnover challenges and meets the 2% plus inflation target. Every site should have their technical teams working to have the automation/cost savings pipeline full with projects that can yield less than four year payback. We need to start moving projects forward now to meet the spend plan later this year and in 2025.
Please make sure to review these projects with your regional leaders, myself and the Eng/MT teams as we are at your sites. Let me know if you have any questions.
Bill may kick start his tenure with a 10% company wide reduction. Who knows
LOL, we can't figure out what's happening a month from now, let alone 2026
Unlikely story. Post entire email or at least a complete paragraph. The reference to 2026 is implausible. You are asking us to believe a month before the new CEO is in position, that a business group is discussing layoffs in 2026. That's now how these decisions are discussed or contemplated. Fake news. Nope. False.
You almost had me.
What does TVOS stand for?
Ugh