This morning Johnson & Johnson announced that it will be restructuring its medical device business in an effort to save between $800 million and $1 billion by 2018. As a result, the company will eliminate 4–6% of jobs (approximately 3000) globally over the next two years. Johnson & Johnson will reportedly restructure into the following areas:
- Vision Care
“As a market leader, we are committed to leveraging our breadth and scale to shape the future of the medical device industry, for the benefit of those we serve,” said Gary Pruden, Worldwide Chairman, Johnson & Johnson Medical Devices, in a company press release. “The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation. These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business.”
According to The Wall Street Journal, the restructuring mainly hits the orthopedics, surgery and cardiovascular segments; its diabetes, vision care, and consumer device segments won’t be affected.