Johnson & Johnson Plans to Improve Overall Cost Structure, While Continuing to Invest in Opportunities for Sustained Profitable Growth

Recently Johnson & Johnson announced the cutbacks to improve overall cost structure. Being a Pharmaceutical consultant, I follows industry trend. I think J&J is following the trend since Pfizer, AstraZeneca and Bristol-Meyers Squibb also announced that they would be trimming back staff this year. I think most cost saving will come from pharmaceutical division, HR, IT, and finance. Also I think...

The latest news from Johnson & Johnson is not related to the approval of a new pharmaceutical entity (NCE) but that they will decrease head count. The Cordis stent initiative has been disappointing because of studies showing no advantage resulting in decreased sales. As each Johnson & Johnson trademarked product goes off patent, there is nothing to replace it and replace its income.

Johnson & Johnson cut cost about $1.3 bn to $1.6 bn for 2008 restructuring charges will be in the range of $550-$750 million in the 2nd half of 2007. 3-4 % of position elimation will effect the 120,500 men and women in 57 countries.