Johnson & Johnson to Slash More Than 7,000 Jobs in 'Restructuring'

[DainBramaged]

Johnson & Johnson, the world’s biggest health-products company, will fire more than 7,000 workers as it tries to eliminate layers of management and invest in more profitable areas of its business.

The cuts will shrink J&J’s workforce by 6 percent to 7 percent and save as much as $1.7 billion by 2011, the New Brunswick, New Jersey-based business said today in a statement.

J&J has been trying to diversify its business into biotechnology medicines, consumer products and medical devices as it faces generic competition to its antipsychotic Risperdal and migraine drug Topamax. The company reported third-quarter revenue that was lower than analysts had expected, citing generic competition and slowing demand for consumer products.

“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,” Johnson & Johnson Chief Executive Officer William C. Weldon said in the statement.

J&J fell 7 cents, or less than a percent, to $59.42 at 9:42 a.m. in New York Stock Exchange composite trading. It has lost 2.7 percent of its value in the past 12 months before today.

Drugmakers have been slashing researchers and salesmen to lower costs over the past two years because of losses from generic competition.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ampfcIbX125E&pos=4

[OHdem10]

1. Globalization at work. More and more jobs will be cut as

our country's living standards are harmonized downward to
make for the "level playing field".

As the head of Morgan Stanley explained at a recent banker's
meeting: There are more job losses to come. We are in a period
of adjustment. All companies have not yet completed their goal.
"These jobs ARE NOT COMING BACK".

Yes,Drug Makers are cutting jobs to lower their costs, but keep
in mind the big picture.

All companies are adjusting to the new reality.

[Vinnie From Indy]

4. Sadly, the US Govt has done everything to grease the skids for offshoring jobs

Decades in the future, I believe that historians will point to the last 25 years as the period when corporations firmly detatched themselves from any nation-state.

[TexasObserver]

2. Recommend

[LiberalEsto]

3. Methinks

At least part of the reason for layoffs is to make the economy look worse, in order to make Obama look bad.

[DainBramaged]

5. I am reminded of the bit in The Fifth Element

When Gary Oldman is told that his stockholders want more value in their shares and recommend that he fire 500,000 cab drivers and he says fire 1,000,000 to keep them happy.

[marmar]

6. Not so sure about that.......

....they've tried to put enough lipstick on this pig of an economy to empty out Sephora.

The Republicans might want to make Obama look bad, but Wall Street wants to keep running its schemes, and they need the illusion of an economic recovery to do that.