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&J to slash more than 7,000 jobs in restructuring

November 04, 2009|Associated Press

Johnson & Johnson said Tuesday that it would cut up to 8,000 jobs and streamline its operations as it braces for changes in the healthcare industry.

The New Brunswick, N.J., company said the cuts would affect 6% to 7% of its global workforce of roughly 118,700. The restructuring is one of its biggest ever and will prompt a restructuring charge of up to $1.3 billion before taxes in the fourth quarter.

Johnson & Johnson plans to simplify its business structure and projects that it will save $800 million to $900 million next year and $1.4 billion to $1.7 billion annually after the restructuring is complete in 2011.

The company, the world's most diversified health-products maker, saw its revenue fall 5% in the third quarter as intensifying generic competition slashed sales of about half a dozen of its prescription drugs, including the schizophrenia drug Risperdal and the epilepsy treatment Topamax.

Chairman and Chief Executive William C. Weldon said the moves are meant to position the company for long-term growth amid an evolving and sometimes turbulent market.

In July 2007, the company reduced its workforce by 4%, or about 4,800 jobs.

Shares of Johnson & Johnson fell 56 cents to close at $58.93 on Tuesday.

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