AP: Johnson & Johnson to cut about 3,000 jobs in medical devices

EDITOR’S NOTE: Johnson & Johnson is the parent company of Ethicon, Inc., located at 3348 Pulliam St., in San Angelo.

Johnson & Johnson’s corporate media relations office responded to a request for information regarding the San Angelo facility Tuesday afternoon.

According to Emile Lee, Johnson & Johnson, the job reduction is a global program that relates to the orthopedics, surgery and cardiovascular businesses and will occur over the next two years.

Lee said in an email, more specific details for the reduction of force, including markets affected, have not been disclosed.

 

NEW BRUNSWICK, N.J. (AP) — Johnson & Johnson expects to cut about 3,000 jobs over the next two years as the health care conglomerate works to restructure its medical devices business.

The New Brunswick, New Jersey, company says that amounts to more than 2 percent of its global workforce of around 127,000 people and 4 percent to 6 percent of its employee total in medical devices.

The company’s actions will lead to annual pre-tax savings of $800 million to $1 billion, much of which will be realized by the end of 2018.

J&J will book a fourth-quarter charge of about $600 million in connection with the restructuring.

The restructuring focuses on its orthopedics, surgery and cardiovascular businesses. It won’t affect consumer medical devices, pharmaceuticals or consumer businesses.

Company shares are up in early trading Tuesday.

 

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.