At least 7000 workers are set to be fired by Johnson & Johnson, the largest health-products company in the world as consumers drastically reduced their expenditure on drugs and skin care during the global recession.
According to reports by the New Jersey based company New Brunswick, it is expected that the health products company is likely to reduce to its 117,000 strong workforce anywhere between 6 percent and 7 percent. The company has also said that these cuts are going to save the company approximately $1.7 billion by 2011.
Johnson & Johnson’s shares have been down by 1.5 percent this year. Last month, there were reports that the sales in consumer products dropped by 2.7 percent to $3.99 billion in the third quarter. The only unit which did not report a decline was the wound care unit. The profit for 2009 is expected to be between $4.54 and $4.59 per share, which confirms a forecast made earlier.
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