Layoffs At Johnson & Johnson
Johnson & Johnson announced Thursday it will cut four percent of its staff and shut down three dozen plants in a restructuring that will cost the health-care products titan $800 million in the fourth quarter.
Johnson & Johnson (JNJ), whose stock is a component of the Dow Jones Industrial Average, said after the market closed that it will close 36 manufacturing facilities around the world and eliminate 5,800 positions from its global work force of 94,000.
However, the maker of Band-Aids said it will add 1,700 positions for a net reduction of 4,100 in the U.S. and 20 other countries. The jobs marked to be eliminated are primarily in manufacturing and operations, the company said.Moreover, Johnson & Johnson, based in New Brunswick, N.J., said it will take a one-time charge in the fourth quarter to cover costs of the restructuring plan as well as write-offs for research and development.
As part of this charge, the company will write off approximately $300 million related to the recent $3.5 billion acquisition of DePuy Inc.
Johnson & Johnson's stock closed down 15/16 at 79 9/16 ahead of the news.
By Khanh T.L. Tran