J&J Makes $900 Million Cuts
AP - Johnson & Johnson has announced that it will trim layers of management, cut jobs, and set other restructuring moves in motion to save up to $900 million next year. The company said the job cuts will affect six to seven percent of its global work force of roughly 118,700 workers, prompting a restructuring charge of up to $1.3 billion pretax in the fourth quarter. Still, the company confirmed adjusted profit guidance between $4.54 and $4.59 per share for 2009.
Johnson & Johnson says it will also simplify its business structure in order to achieve savings, and projects that it will save between $1.4 billion and $1.7 billion annually after the restructuring is complete in 2011. The company saw its revenue fall five percent in the third quarter as intensifying generic competition slashed sales of about a half-dozen of its prescription drugs.
Chairman and CEO William C. Weldon offered these comments, “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. We recognize their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process.”