Back in August the company announced their restructuring plan to create 3 operating committees and perhaps this is a result of studies to determine 
where the money is to be best spent. The layoff represents 6-7 percent of the employees at the company. I posted recently about a contract cancelled with a company named Palomar due to current economic times.
Johnson and Johnson Cancels Contract with Palomar – Unfavorable Economic Conditions Stated For A Massive Product Launch
The company has a very large consumer base product line which we all see in the stores as well as their biotech investments and prescription drug division. Like every other pharma company, restructuring is the game plan. Recently Astra-Zeneca announced reducing their rank and file by laying off all their US pharma reps. There was no word on exactly where all the layoffs will come, but I’m sure there will be more to come. It is getting more difficult to get a drug to market today and the days of the big “blockbuster” drug are disappearing. Drugs are still being developed, but things are different today, more information available, more information on side effects, and add genomics in the picture and you end up with a pretty 
complicated costly scenario.
Earlier this year with the acquisition of Cougar Biotech in Los Angeles, Johnson and Johnson went out a bit on a limb some say, due to the fact that the company has a strong pipeline built, but no FDA approved products on the market yet. All pharma companies seem to be looking at taking this type of a gamble though as to develop in house, the expense would be huge.
Risperdal and migraine drug Topamax patents are going away, so that represents additional revenue loss in the pharma department with generic competition. As with every pharma company, there are the law suits and J and J has their share from whistle blowers to off label allegations to be dealt with. The consumer products division still seems to be strong source of revenue as we all buy the products off the shelves in the store every day. Part of the consumer goods business was purchased from Pfizer a few years back. One executive today from a J and J company found a home as a CEO at Rosetta Genomics. BD
Rosetta Genomics cancer test now available in 48 states – cancer ...
Nov. 3 (Bloomberg) -- Johnson & Johnson, the world’s biggest health-products company, will fire more than 7,000 workers as it tries to eliminate layers of management and invest in more profitable areas of its business.
The cuts will shrink J&J’s workforce by 6 percent to 7 percent and save as much as $1.7 billion by 2011, the New Brunswick, New Jersey-based business said today in a statement.
J&J to Slash More Than 7,000 Jobs in Restructuring (Update3) - Bloomberg.com
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