Johnson & Johnson to Slash 8,700 Jobs

Company says moves will save up to $900M annually
By Newser Editors and Wire Services
Posted Nov 3, 2009 8:56 AM CST
A customer removes a box of Band-Aids, a Johnson and Johnson brand, from a display at Eastwood Pharmacy, in Tallahassee, Fla.   (Phil Coale)

(Newser) – Johnson & Johnson will cut 7% of its workforce—some 8,400 jobs—and make other other restructuring moves in order to save up to $900 million next year. The New Brunswick, NJ, company says it will also simplify its business structure in order to achieve savings that will add up to between $1.4 billion and $1.7 billion annually after the restructuring is complete in 2011.

Still, the company confirmed adjusted profit guidance between $4.54 and $4.59 per share for 2009. J&J, 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 a half-dozen of its prescription drugs, including the schizophrenia drug Risperdal and the epilepsy treatment Topamax.