Thread regarding Solventum layoffs

Transform for the Future... uncannily similar to 3M SAP promises

From our Q3 press release yesterday: Solventum has launched 'Transform for the Future', a new multiyear global initiative (the "Program") to further accelerate its long-term growth strategy and strengthen its position in a rapidly changing healthcare environment. Designed to reshape the Company's cost structure, enhance operational efficiency and fuel innovation for profitable growth — to deliver greater value for customers and patients worldwide. Once fully implemented, the Program is expected to generate approximately $500 million in annual cost savings, with a portion of the savings reinvested in strategic growth initiatives. The Company anticipates cumulative pretax costs related to the Program will be approximately $500 million.

https://investors.solventum.com/news-events/press-releases/detail/135/solventum-reports-third-quarter-2025-financial-results

Reeks of Inge's $500M/year claimed savings which never manifested. SAP started circulation at 3M in something like 2010, with the fever dream reaching maximum levels in perhaps 2014-2018. They had mandatory "Here, you matter" meetings and plastered the walls of the Quad with SAP propaganda (graphics of people holding a red ball and "You play a part" or whatever nonsense).

3M had a blurb like this in 3 consecutive Annual Reports (2015-2017), then it was dropped into a memory hole starting in 2018. As of spin-off, 3M still wasn't fully deployed. We are already beginning to realize productivity gains from Business Transformation, which will increase in 2017 and beyond. By 2020, we expect it will result in $500–$700 million in annual operational savings and another $500 million reduction in working capital.

https://www.annualreports.com/HostedData/AnnualReportArchive/3/NYSE_MMM_2016.pdf

My gut is that Transform for the Future is attempting to juice the stock based on returns that will never manifest. I wouldn't be surprised if it is a rebrand of 3M's SAP promises, as the whole "Transform for the Future" verbiage is so vague. What are they spending $500M on, and where will the $500M/year come from? Could they really mean "We're going to spend $500M to complete 3M's partial SAP roll-out" and re-promising the same savings as 3M did in 2015?

I noted that "innovation" is put last, while redundant terms (cost structure and operational efficiency) are up front. Only savings are cited, not increased sales or new products (who are our "customers," again?). Doesn't inspire confidence that we'll be, you know, actually improving patients' lives. Feels like monkeying with financial levers to "create value" (C-suite money bags) where there is none.

Curious what others think.


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| 1072 views | | 2 replies (last November 7) | Reply
Post ID: @OP+1k9g0v7ss

2 replies (most recent on top)

@ac I read "transform for the future" as MORE LAYOFFS COMING. Sc--w them. How about reducing the BLOATED executive salaries to properly afford the people who actually DO THE WORK!?

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Post ID: @ag+1k9g0v7ss

I was involved for a while heavily in the (never-ending) SAP implementation during the so-called glory years you reference. For a while, we drank the Kool Aid truly thinking that what we were doing was transformational and would "accelerate" 3M to a bright decade of growth. Can't tell you how many hours myself and many others slaved over computers, traveling on Sunday nights so we could be ready to go first thing Monday morning. And then, yes, PFFT around 2018. All those hours crunched together in conference rooms went bye-bye.

The winners? Accenture and McKinsey made perhaps a few billion and kept just priming the pump until Inge and then Mike decide A3M would go down at 3M like Edsel did at Ford. Or Lisa went with Apple in the 80s.

Was told early on that SAP was designed for widget companies that had parts not complicated chemical industry. Some companies with only 5000 SKUs could implement it. But it was doomed at 3M.

As for transformations, remember this. Bryan is NOT running the company. He is the world's most expensive 40 million dollar sock puppet. The real guy behind the curtain is some 83 year old guy who's probably hosting millionaires and billionaires on his Florida yacht right now with bottles of wine that cost more than what some SOLV packagers make in a week. Yep, does anyone think an 83 year old guy cares what this company will look like in five years?

GLTA. So glad I'm retired and out of this madness. Time for a good beer!

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Post ID: @ac+1k9g0v7ss

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