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Following a 5% revenue drop in the third quarter of 2009, Johnson & Johnson (J&J) is planning a restructuring to save nearly US$900 million a year, including cutting approximately 7,000–8,000 jobs.
The company reported that it will trim layers of management, cut jobs and set other restructuring moves. The job cuts will affect 6–7% of its global work force of roughly 118,700 workers, prompting a restructuring charge of up to US$1.3 billion pretax in the fourth quarter.
J&J reportedly will save US$1.4–1.7 billion annually after the restructuring is complete in 2011. The company has not yet reported where it will cut jobs and whether job cuts will be made in personal care R&D.