The 2020 Mid-Year Economic Update_long

3M: Finding Balance in a Tough Economy

Like so many other companies in the current economy, 3M is finding itself in a position of making difficult decisions in order to survive. Over the past week, the company has announced that it would be laying off 2,300 workers before the end of the fourth quarter. Pay increases have already been deferred for many, and temporary workers and overtime have been eliminated. CEO George Buckley told analysts in a recent 2009 earnings outlook presentation that more cuts will be made if necessary.
 
But, according to Buckley, survival isn't enough. The changes being made at the company are all being made with the perspective that they will strengthen the company for when the economy returns to more sane"conditions. "This is the time for prudence, but it's not the time for ...

Like so many other companies in the current economy, 3M is finding itself in a position of making difficult decisions in order to survive. Over the past week, the company has announced that it would be laying off 2,300 workers before the end of the fourth quarter. Pay increases have already been deferred for many, and temporary workers and overtime have been eliminated. CEO George Buckley told analysts in a recent 2009 earnings outlook presentation that more cuts will be made if necessary.
 
But, according to Buckley, survival isn’t enough. The changes being made at the company are all being made with the perspective that they will strengthen the company for when the economy returns to more sane”conditions. “This is the time for prudence, but it’s not the time for surrender.”
 
As such, the company plans to continue its focus on research and development while making changes to operations and policies, like toughening credit procedures.
 
According to Buckley, the key is finding the best balance in a bad situation: “We still intend to take control of the things that we can take control of and create the best future that we possibly can.”

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