Red Star Capital Bureau reported on November 18th that there have been reports of layoffs in multiple product lines of Johnson&Johnson China recently.
The laid-off employee who has been working at Johnson&Johnson for 8 years told Red Star Capital today that this layoff involves multiple departments, with the surgical department having more layoffs. Employees under 3 years old will receive N+1 compensation, employees between 3 and 6 years old will receive N+2 compensation, and employees over 6 years old will receive N+3 compensation. She believes that the changes in the company's organizational structure will have a significant impact, and at the same time, the company's profit will decrease due to the policy of volume based procurement, with the surgical department's consumables being the most affected.
As of the time of writing, there has been no response from the Red Star Capital Bureau regarding the authenticity of the layoffs by Johnson&Johnson China, the situation and reasons for the layoffs, and the company's future development plans.
Red Star Capital noticed that Johnson&Johnson's financial report data showed that in the third quarter of this year, Johnson&Johnson's sales increased by 5.2% year-on-year to $22.471 billion, net profit decreased by 37.5% year-on-year to $2.694 billion, and adjusted net profit decreased by 13.3% year-on-year to $5.876 billion.
It is worth noting that Johnson&Johnson originally owned multiple healthcare brands such as Dabao, Johnson&Johnson Baby, and Neutrogena. In 2021, the group split its consumer health business and focused on two major businesses: medical technology and innovative pharmaceuticals. The consumer health business has become an independent company called Kenvue, which will be listed on the New York Stock Exchange in 2023.
Kecheng also has a layoff plan. The company announced in May this year that its board of directors had approved a measure to lay off 4% of its workforce globally, aiming to improve organizational efficiency and better position Keda for future growth.