Johnson & Johnson Cutting Global Work Force By 6-7%, Looking To Save $900 Million Next Year (JNJ)

11/3/2009 - Johnson & Johnson (NYSE:JNJ) said Tuesday that it will trim management, cut jobs, and set other restructuring moves in order to save the company up to $900 million next year. The job cuts will affect about 6% to 7% of its global work force of roughly 118,700 workers, prompting a restructuring charge of up to $1.3 billion pretax in Q4. The company reaffirmed EPS guidance of $4.54 and $4.59 for 2009, vs. the consensus estimates of $4.58. Chairman and CEO William C. Weldon said in a statement, "Johnson & Johnson has long adhered to a broad-based operating model and set of sound management principles that have driven our success." He added, "These types of changes are difficult under any circumstances, and will have a very personal impact on people who have been dedicated to the mission of Johnson & Johnson. We recognize their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process."

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