Johnson & Johnson (JNJ) Sets Massive Restructuring, Cutting Up to 8,000 Jobs
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In an attempt to save $900 million dollars next year, Johnson & Johnson (NYSE: JNJ) said Tuesday that it will execute several restructuring moves including trimming layers of management and cutting several thousands of jobs. The move comes after the company saw a 5 percent drop in revenue for the third quarter.
The job cuts will potentially eliminate 8,000 jobs, or 7 percent of the workforce for the global health care company.
The restructuring project is estimated by the company to save $1.4 to $1.7 billion once the program is completed in 2010.
"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," Chairman and CEO William C. Weldon said. "We recognize their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process."
The company affirmed adjusted profit guidance between $4.54 and $4.59, taking into account the $1.3 billion pretax restructuring charge resulting from the layoffs.
"We're trying to make sure we've really set ourselves up for the future," Weldon said. "We have such a rich portfolio that we have to make sure we have the resources to invest."
Shares for Johnson & Johnson have dipped slightly following the restructuring news, trading down 0.84 percent at $58.99.
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