J&J to cut 3,000 jobs
Will pump Medical Device savings into "growth opportunities"
Johnson & Johnson said this morning it plans to cut at least $800 million a year from spending on its Medical Devices division. J&J plans to shave at least $200 million in yearly spending from the group this year, with bigger cuts through 2019. The company said this works out to around 5% of its global medical-device workforce. That works out to "approximately 3000 positions globally in our surgical, orthopedics and cardiovascular business over the next two years," spokesman Ernie Knewitz told me.
J&J says this would free cash so it could invest more in "new growth opportunities." The division includes West Chester-based Synthes, the bone-replacement company J&J bought for nearly $20 billion in 2012. (Corrected)
In a statement to employees, J&J said the cuts would "accelerate its pace of innovation" and "strengthen its go-to-market model." The company expects a pre-tax restructuring charge of $600 million in late 2015, and more later. J&J still expects to record sales of at least $70 billion this year.
The cuts won't expect the company's Consumer Medical Devices, Vision Care or Diabetes Care businesses.