J&J CEO Says Job Cuts 'Skewed' To Outside US
November 03 2009 - 10:15AM
Dow Jones News
Johnson & Johnson's (JNJ) planned job cuts will be across
all of its businesses and skewed to outside the U.S., the
health-care giant's leader said Tuesday.
The New Brunswick, N.J., company said earlier it would cut about
6% to 7% of its global work force or up to nearly 8,200 positions,
in a restructuring designed to reduce costs by $1.4 billion to $1.7
billion.
On a conference call with analysts, J&J Chief Executive
William Weldon cited the weak economy as one factor in the
restructuring.
"If you look at the future economically, I think there's
challenges still ahead of us," Weldon said.
"Until we see easing in unemployment and other areas, people are
going to be much more cautious in the way they spend resources,"
Weldon said.
Chief Financial Officer Dominic Caruso said analysts shouldn't
adjust their 2010 earnings estimates to reflect Tuesday's
restructuring announcement because he said it appears analysts
already anticipated some savings.
Caruso did say that Wall Street views for 2010 don't appear to
factor in the impact of U.S. health-care reform. He said the
company would probably have more clarity on the potential impact in
early 2010, and that Tuesday's actions weren't directly related to
potential health-care reform.
-Peter Loftus; Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com
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