Date: 2016-01-19
Type of information: Restructuring
Compound:
Company: J&J (USA - NJ)
Therapeutic area: Medical devices
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On January 19, 2016, J&J announced restructuring actions in its Medical Devices businesses to better serve the needs of customers and patients in today’s evolving healthcare marketplace. The company is undertaking actions to strengthen its go-to-market model, accelerate the pace of innovation, further prioritize key platforms and geographies, and streamline operations while maintaining high quality standards. The company estimates that the actions announced will result in position eliminations of approximately 4 to 6 percent (about 3,000 jobs) of the Medical Devices segment’s global workforce over the next two years, subject to any consultation procedures in countries where required. J&J’s Consumer Medical Devices businesses, Vision Care and Diabetes Care, are not impacted by these actions. J&J announced that these actions are expected to result in annualized pre-tax cost savings of $800 million to $1.0 billion, the majority of which is expected to be realized by the end of 2018, including approximately $200 million in 2016. The savings will provide the company with added flexibility and resources to fund investment in new growth opportunities and innovative solutions for customers and patients. In connection with its plans, the company expects to record pre-tax restructuring charges of approximately $2.0 billion to $2.4 billion, which will be treated as special items, of which approximately $600 million will be recorded in the fourth quarter of 2015.
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