J&J Makes $900 Million Cuts

Tue, 11/03/2009 - 6:19am

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.”


Share this Story

You may login with either your assigned username or your e-mail address.
The password field is case sensitive.