J & J to Cut up to 7% of Work Force,
Tue, 11/03/2009 - 3:38am
NEW YORK (AP) — Johnson & Johnson said Tuesday it will trim layers of management, cut jobs, and set other restructuring moves in order to save up to $900 million next year. The New Brunswick, N.J., company said the job cuts will affect 6 to 7 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, the world's most diversified health-products maker, saw its revenue fall 5 percent in the third quarter as intensifying generic competition slashed sales of about a half-dozen of its prescription drugs. "Johnson & Johnson has long adhered to a broad-based operating model and set of sound management principles that have driven our success," said Chairman and CEO William C. Weldon, in a statement, adding that the program should keep the company positioned for long-term growth in the health care industry. "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 said. "We recognize their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process."