New Jersey-based J&J expects to eliminate about 3,000 jobs, or 2.5 percent of its global workforce of about 127,000 employees. The reduction would equate to 4 percent to 6 percent of its global Medical Devices segment, which includes about 60,000 employees.
The streamlining is expected to result in annualized pre-tax cost savings of $800 million to $1 billion for J&J (NYSE: JNJ). The majority of that is expected to be realized by the end of 2018, including about $200 million this year.
“This is a global program that relates to our orthopaedics, surgery and cardiovascular businesses and will occur over the next two years,” Matthew Johnson, a spokesman for Ethicon, said. “More specific details have not been disclosed at this point.”
J&J declined to say whether it intends to exit any businesses. The company plans to provide more details when it reports fourth-quarter earnings on Jan. 26.
The streamlining is expected to result in annualized pre-tax cost savings of $800 million to $1 billion for J&J (NYSE: JNJ). The majority of that is expected to be realized by the end of 2018, including about $200 million this year.
“This is a global program that relates to our orthopaedics, surgery and cardiovascular businesses and will occur over the next two years,” Matthew Johnson, a spokesman for Ethicon, said. “More specific details have not been disclosed at this point.”
J&J declined to say whether it intends to exit any businesses. The company plans to provide more details when it reports fourth-quarter earnings on Jan. 26.