Johnson & Johnson to cut workforce by 7% in restructure
Johnson & Johnson is to trim layers of management, simplify business structures and processes and cut its workforce of roughly 117,000 by 6-7% in a global restructuring designed to strengthen its position as the world's leading global healthcare company and enable it to bring new products more rapidly to market.
Johnson & Johnson is to trim layers of management, simplify business structures and processes and cut its workforce of roughly 117,000 by 6-7% in a global restructuring designed to strengthen its position as the world's leading global healthcare company and enable it to bring new products more rapidly to market.
The company expects the moves to increase its operational efficiency and generate pre-tax cost savings of US$1.4-US$1.7bn annually after the restructuring is complete in 2011. Savings of between US$800-US$900m are expected to be achieved next year.
The company will take a charge of US$1.1-US$1.3bn in the fourth quarter of 2009, treated as a special item.
"We are announcing a series of actions and plans designed to ensure that our company remains well-positioned and appropriately structured for sustainable, long-term growth in the healthcare industry," said William Weldon, ceo of J&J.
"These types of changes are difficult under any circumstances, and will have a very personal impact on people who have been dedicated to the mission of Johnson & Johnson," he added.
"We recognise their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process."