You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Road to recovery

  • Factory output gives hint of faster growth
    U.S. factories boosted output last month, and December ended up being their best month of growth in five years.
  • January retail sales pick up
    Americans rebounded from a weak holiday season and stepped up spending on retail goods in January. The latest government report on retail sales pointed to a slowly improving economy. Retail sales rose at a seasonally adjusted 0.
  • Jobs lost; hopes fade
    J.R. Childress is up before the sun, bustling about in the French colonial brick house he built.
Advertisement
Locally
Johnson & Johnson employs about 1,200 area workers in its Warsaw-based subsidiary DePuy Orthopaedics Inc. But it’s too soon to tell whether any will be swept up in massive job cuts announced Tuesday.
Johnson & Johnson spokesman Bill Price said the company won’t release details of the cuts until employees are told whether they’ll stay on. It’s a process that will start today but will last “weeks or months,” Price said.
“We owe it to our employees to inform them first,” he said.
Associated Press
Johnson & Johnson, maker of Band-Aid bandages, said Tuesday it will cut about 8,000 jobs in a restructuring effort.

J&J plans to cut 8,000 jobs

Restructuring comes in light of expected health care revamp

– Johnson & Johnson said Tuesday it will cut up to about 8,000 jobs and streamline its operations in an effort to cut costs as it braces for changes in the health care industry.

The New Brunswick, N.J.-based company said the cuts will affect 6 percent to 7 percent of its global workforce of roughly 118,700 workers.

The restructuring is one of Johnson & Johnson’s biggest and will prompt a restructuring charge of up to $1.3 billion pretax in the fourth quarter.

Johnson & Johnson plans to simplify its business structure and projects that it will save between $800 million and $900 million next year and $1.4 billion and $1.7 billion annually after the restructuring is complete in 2011.

The company, the world’s most diversified health products maker, saw its revenue fall 5 percent in the third quarter as intensifying generic competition slashed sales of about a half-dozen of its prescription drugs, including the schizophrenia drug Risperdal and the epilepsy treatment Topamax.

Chairman and CEO William C. Weldon said the moves are meant to position the company for long-term growth amid an evolving, and sometimes turbulent, market.

The new restructuring program comes on the heels of management’s decision to reorganize its comprehensive care business in August. That unit was created under a 2008 restructuring program with the goal of boosting sales, though sales were down during the first half of 2009. The unit makes medical devices and tests.

In July 2007, the company set a restructuring program that reduced its workforce by 4 percent, or about 4,800 jobs.

“When you look at the total economic environment, I don’t think anybody knows what’s going to happen,” Weldon said Tuesday. “But nobody expects it to come back tomorrow.”

– Marty Schladen, The Journal Gazette