PTI

Johnson & Johnson likely to cut over 8,000 jobs

Tue, Nov 3 10:13 PM

New York, Nov 3 (PTI) Healthcare major Johnson & Johnson today said it would slash as many as 8,190 jobs worldwide, as part of its restructuring initiatives. The company has a global workforce of 1,17,000 employees.

In a statement today, J&J said it estimates "that position eliminations will be in a range of 6-7 per cent of its global workforce, subject to any consultation procedures on these plans in countries where required". Bringing down the employee strength by about seven per cent would account for 8,190 job losses.

J&J is looking at growth opportunities in the healthcare sector apart from aggressive plans to introduce new products. The restructuring efforts is anticipated to generate annualised pre-tax cost savings of USD 1.4-1.7 billion, once completed in 2011.

Out of the total amount, about USD 800 - 900 million is expected to be realised next year. According to the company, these efforts would result in a pre-tax restructuring charge in the range of USD 1.1-1.3 billion in the fourth quarter of 2009.

"Today, we are announcing a series of actions and plans designed to ensure that our company remains well-positioned and appropriately structured for sustainable, long-term growth in the health care industry," J&J Chairman and Chief Executive Officer William C Weldon said.

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