Workforce cuts

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anonymous

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During todays earning call, modest cut to workforce was mentioned. “Mr Wolk said several jobs would be affected, though he did not give a number and sait it would not be a major restructuring”.

Anyone know when? What depts?
 
























Must be a decent amount going or a specific grouo for them to even bother mentioning. Can't remember the last time job cuts or reshuffling the decks didn't happen at this time of year
 








Naive you are if you believe those were all the cuts referenced in WSJ article and in internal emails. There is no question that more cuts will follow in the next few months.
 




anonymous said:
Naive you are if you believe those were all the cuts referenced in WSJ article and in internal emails. There is no question that more cuts will follow in the next few months.
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Its a fact! More layoffs are coming. The clever executives believe small rounds will hide there greed. Its broken up into multiple rounds to quite media and financial reporting regulations. So hold on its going to be a bumpy ride....
 








There was no formal announcement in the Q3 earnings presentation The job cuts were given in an answer to a question from Chris Schott at JP Morgan regarding margins and inflation, to which Joe Wolk response includes the following devastating tidbits:

"So as we finalize our plans for 2023, we will be looking at prioritizing our resource deployment to those initiatives, those projects, those services that deliver the most value for patients, which in turn is then healthy for our business."

"The other dynamic that's at play, Chris, and maybe why I'm a little bit hesitant to give you specific guidance at this point in time, is the separation of the consumer health business. So we're going through some of our plans now. We have the opportunity, as we said on prior calls, to rightsize our infrastructure for a two-segment company versus a three-segment company that we've had historically. And so we're looking at opportunities there as well."

"focus on those precious few projects that matter the most. And that's what we'll continue to do in 2023."

From Joe's response, if you unravel the spin, he's saying they plan on cutting projects and also trying to combine some of the overhead in the medtech & pharma sectors. There might be cuts in enterprise functions since the enterprise previously supported 3 sectors and now it will only support 2 sectors.

Johnson & Johnson (JNJ) Q3 2022 Earnings Call Transcript | The Motley Fool
 




anonymous said:
There was no formal announcement in the Q3 earnings presentation The job cuts were given in an answer to a question from Chris Schott at JP Morgan regarding margins and inflation, to which Joe Wolk response includes the following devastating tidbits:

"So as we finalize our plans for 2023, we will be looking at prioritizing our resource deployment to those initiatives, those projects, those services that deliver the most value for patients, which in turn is then healthy for our business."

"The other dynamic that's at play, Chris, and maybe why I'm a little bit hesitant to give you specific guidance at this point in time, is the separation of the consumer health business. So we're going through some of our plans now. We have the opportunity, as we said on prior calls, to rightsize our infrastructure for a two-segment company versus a three-segment company that we've had historically. And so we're looking at opportunities there as well."

"focus on those precious few projects that matter the most. And that's what we'll continue to do in 2023."

From Joe's response, if you unravel the spin, he's saying they plan on cutting projects and also trying to combine some of the overhead in the medtech & pharma sectors. There might be cuts in enterprise functions since the enterprise previously supported 3 sectors and now it will only support 2 sectors.

Johnson & Johnson (JNJ) Q3 2022 Earnings Call Transcript | The Motley Fool
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I doubt the people being “downsized” (more correct then “right size” as the stuffed shirt Wolk calls it) consider it an “opportunity”.
 








anonymous said:
They are splitting Medtech and Pharma Supply chain because they are getting the groundwork ready to spin-off Medtech in a few years as well
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Not much of medtech is remaining. They already dumped LifeScan, Cordis, ASP, Ortho Clinical Diagnostics, Calibra, Mammotome, Synthes (sold to Jabil), and Codman while shuttering Animas and Sedasys. They might hang onto Biosense Webster, Vision Care, NeuWave, Torax and Cerenovus for now since they have double digit growth. Candidates for spin off or divestment would be DePuy, Ethicon, and Mentor while shuttering Acclarent and the robotics high school science project they're running in Santa Clara.
 








You are almost right. There is no way they dump Ethicon. That's the core that keeps the lights on and is much more profitiable than DePuy. Mentor and Acclarent are part of GPs legacy of exceptionally stupid acquisitions.
 








anonymous said:
The robotics situation is a complete embarassment to the corporation. No one though is being held to account on this at the leadership level.
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I don't see how J&J robotics will compete against Intuitive Surgical with the extremely wide & deep moat they have built globally with their DaVinci system & recurring revenue stream from service & instruments, or even Medtronic, which already received EU approval last year for their Hugo system.

Perhaps Ethicon & DePuy might be spun-off into a standalone medical device giant. J&J could also spinoff Surgical Vision & Vision Care into a standalone company, similar to the move Novartis did in spinning off Alcon.
 








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