| Johnson & Johnson to cut up to 7% of jobs |
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03/11/2009 18:09 (17 Day 11:48 minutes ago) | |||||
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The FINANCIAL -- The consumer health company Johnson & Johnson announced that it will cut up to 7% of its global workforce, as the company restructures and seeks cost savings.
The New Brunswick, N.J.-based consumer health product maker has about 117,000 employees spread across more than 250 companies, CNN Money reported. "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," William Weldon, J&J's chairman and chief executive, said in a statement.
The company said it expects to generate annual pre-tax cost savings of $1.4 billion to $1.7 billion in 2011, according to Reuters. Cost savings will be achieved mainly by reducing layers of management, increasing individual spans of control, and simplifying business structures and processes, the company said in a statement.
The Street reported that J&J said it expects to record an associated pre-tax, restructuring charge in the range of $1.1 to $1.3 billion in the fourth quarter.
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, according to AP.
"Johnson & Johnson has long adhered to a broad-based operating model and set of sound management principles that have driven our success," said Weldon, adding that the program should keep the company positioned for long-term growth in the health care industry, the same source wrote.
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