Johnson & Johnson to cut up to 8k jobs to push profits

[ChromeFoundry]

Source: Reuters

4 Nov 2009, 0123 hrs IST, REUTERS

NEW YORK: Johnson & Johnson said on Tuesday it plans to cut 6-7% of its workforce in a battle to prop up profits in the face of generic
competition to its prescription drugs. The company said the cuts will affect 7,000 to 8,000 jobs, and generate annualised cost savings of $1.4 billion to $1.7 billion in 2011, with $800 million to $900 million expected to be achieved in 2010.

J&J, which employs about 117,000 people worldwide, said it will take a charge of $1.1 billion to $1.3 billion against its fourth-quarter earnings, but did not change its 2009 earnings forecast excluding one-time items of $4.54 to $4.59 per share.

The cuts will mainly be achieved by reducing layers of management and simplifying business structures and processes, the company said. William Weldon, the company’s chief executive officer, said the cuts are designed to ensure its broad-based operating model remains appropriately structured for long-term growth.



Read more: http://economictimes.indiatimes.com/news/international-...

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More jobs gone...

[budkin]

1. Ah yes... the bottom line. Shareholders must be taken care of.

[CoffeeCat]

5. Johnson & Johnson has fared well during the recession...

I have watched the stock market very closely since the downturn. Johnson & Johnson has
repeatedly reported amazing earnings and profits, while the economy tanked.

In 2008, the stock hovered around the mid 60's. Then, it went down near the 40's in early
09, but in the past few months it has been up around 60.

Things seem to be looking better, as far as the stock price. Interesting that they're making
these cuts now.

Anyone else get the sense that things were getting better for a while--but that many signals
are now pointing toward another significant dip?

[jgraz]

6. Fuck the shareholders. Those execs need their bonuses!

Our economic system has become nothing more than legalized theft.

[OhioChick]

2. But, but, but...the recession is over. "They" said so. n/t

[CoffeeCat]

3. I think "brand names" are having trouble...

This is just my guess--but I think many companies that sell brand-name products are experiencing challenges,
as the public choses generic brands to cut costs.

I have been a couponer for seven years--and brand-name products are really fighting for our dollars. There are
so many good deals and promotions out there on everything from breakfast cereal, cheese, shampoo--just to name a few.

Last week, General Mills had a national promotion--but 6 of their cereals, get $10 off--plus get a coupon at the
checkout for $6 off any milk purchase. Plus, you could also combine manufacturer coupons with this deal. I
ended up donating more than 60 boxes of cereal to the local food pantry, because the cereal was either free or
50 cents a box, depending on the particular kind of cereal purchased.

I am seeing CRAZY deals and promotions every week. More than I ever have in my years of couponing.

As more families try to cut costs, they're switching to generic brands. These brand-name companies are desperately
trying to lure consumers back in with great deals.

[defendandprotect]

4. We need to re-regulate capitalism . . . immediately!!!

[WriteDown]

12. What kind of regulations are you referring to?

Make is illegal to engage in layoffs? Sadly, there is not much that can be done.

[defendandprotect]

13. There was always an agreement with corporations/capitalists that they

supplied the jobs and we permitted them a certain level of exploitation of workers.

In many cases, there is huge pollution involved in conducting "business" which was

another trade off.

In more recent times going back decades now, many tax advantages as states competed

with one another to hold jobs.

Re-regulate their asses off --!!

[WriteDown]

14. Please link to these agreements.

So you're going to regulate that they can't layoff people?

[defendandprotect]

15. You would have to hear Congressional members discussing this ...

many years ago --

Try C-span . . .

We can also regulate capitalism in preventing them from taking capital out

of the country --

forcing new investments in business rather than taking profits in executive bonuses,

etal.

Why would you be against New Deal reforms which were overturned by Repugs?

[WriteDown]

16. Please link to C-Span transcripts then. nt

[defendandprotect]

17. We need to reinstitute New Deal Reforms/Regulations on capitalists/corporations ....

AND bring up taxes on the wealthy again to prior levels -- 1950's . . . and

earlier ..

As for the C-span transcripts, when they link to them I'll let you know!

You seem to be rather narrowly focused . . . enjoy yourself -- !!



I don't know what's more humorous . . . that so many think nothing happens

unless they see it on TV, or that others think nothing happens unless there's

a link to it on the internet!!

[exboyfil]

7. My brother in law is one of them

Three young children (all under 3) and a stay at home wife to care for the kids. He just bought a house and a vehicle.

I can't imagine making a go of it in Philadelphia without a professional position. My wife and I went through this in 1992, and I was scared and we did not even have kids yet. I can't imagine how he must be feeling now.

[Miss Authoritiva]

10. Sorry to hear that...

I have family members who work for J&J in New Jersey. I have to say, compared with the crappy companies I've worked for, J&J seems to offer absolutely fantastic benefits.

[OhioChick]

11. I'm sorry to hear this..

I hope your brother in law finds something else soon.

[forum slut]

8. And people wonder why Wall Street and Main Street are disconnected.

Excuse my negativity but this recovery is a fucking disaster.

[SoCalDem]

9. They should just fire everyone... they'd be rich, I tell ya..rich

They could import some people over here who don;t speak the language, and then keep them all together where no one can let them out..and then feed them cheap food and not pay them.. uh wait..we tried that before, didn't we?

[mule_train]

18. Robert Wood Johnson Foundation=> Neoprohibitionist nt

[KansDem]

19. Man, they cut any more and they'll have to change their name to "Johnson" (nt)