Health care giant Johnson & Johnson announced Tuesday that it would eliminate up to 8,000 jobs worldwide, or 7% of its workforce, as a cost-savings measure, according to CNN.
Many of the cuts will come from management levels as the company revises its corporate structure. As a result, Johnson & Johnson expects to save between $800 million and $900 million this year.
Johnson & Johnson manufacturers household health and beauty products, like soaps and mouthwash, along with pharmaceuticals and medical devices. The recession has impacted both sides of J&J's business.
The majority of the job cuts will occur outside of the U.S., according to CEO Bill Weldon, and will occur across all aspects of the business.
Johnson & Johnson's restructuring has been occurring over the past few years, as it attempts to fight off competing drug manufacturers and generic versions of its own drugs. In July, 2008, J&J cut 4% of its workforce. In April, 2009, about 900 U.S. sales jobs were eliminated.
Tags: johnson & johnson, mass layoffs, Unemployment
This entry was posted on Wednesday, November 4th, 2009 at 11:19 am and is filed under Financial Literacy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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Completely agree with your comments on this - thanks for taking the time to post.
Just imagine 8,000 people without jobs. We just hope that the economy will be back on it’s good health.