Source: Instrument Family

Recently, the updated WARN information in New Jersey, USA, showed that Johnson & Johnson plans to cut 231 jobs in New Brunswick, New Jersey, with an effective date of December 27, 2024.

A spokesperson for Johnson & Johnson stated in a declaration that the company must adapt and evolve within a "complex and rapidly changing external environment," but did not elaborate on the specific departments affected by this round of layoffs.

A week ago, *Endpoints News* reported that the company was dissolving its cardiovascular and metabolic division, a move that primarily impacted the sales, marketing, and medical affairs teams.

In response to this round of layoffs, Johnson & Johnson stated via email: "The company is addressing some of the world's most pressing health challenges through science and technology-driven innovations. To continue meeting the needs of patients around the world both today and in the coming years, we must adapt and evolve our business within a complex and rapidly changing external environment. Under our guidance, the company will provide support for employees affected by these changes, helping them explore new opportunities within the company and offering career services and related assistance."

In fact, since 2023, Johnson & Johnson has laid off at least 1,000 employees globally.

In March 2023, Johnson & Johnson announced a workforce restructuring and layoff plan. The restructuring includes merging the Mitek Sports Medicine business into another business unit. It was revealed that this could result in the loss of at least 1,000 jobs, and it is speculated that the layoffs may affect the entire company.

In October 2023, DePuy Spine, a subsidiary of Johnson & Johnson's orthopedics division DePuy Synthes, laid off 67 employees at its Monument facility in Colorado. This marks the company's third round of layoffs since the end of July 2023, totaling 92 positions eliminated. After evaluating its supply chain, the company began transferring product supply from the Monument facility to the Mooresville distribution center in Indiana starting in 2020.

On September 25, foreign media reported that Johnson & Johnson is gradually shutting down its cardiovascular and metabolic divisions within its pharmaceutical sector, a move that primarily impacts sales, marketing, and medical affairs teams.

It is reported that this is Johnson & Johnson's second large-scale restructuring following the closure of its infectious diseases and vaccines division last year. This restructuring primarily impacts the commercial operations of the cardiovascular department, rather than research and development. This change has prompted Johnson & Johnson to implement layoffs globally and divest many vaccine and prevention programs.

The core product of the Cardiovascular and Metabolism division is Xarelto (rivaroxaban), an anticoagulant developed in collaboration between Johnson & Johnson and Bayer, which was once one of the best-selling drugs in the world. However, due to Medicare price negotiations by the U.S. government, the price of Xarelto has been reduced by 62%.

Johnson & Johnson's medical device division remains unaffected in the cardiovascular field and is actively pursuing relevant acquisitions and R&D activities:

▪ In August this year, Johnson & Johnson will acquire V-Wave for a prepayment of $600 million.

▪ In April this year, Johnson & Johnson acquired all outstanding shares of Shockwave for $13.1 billion in cash. The company focuses on developing products for the treatment of calcified cardiovascular diseases and launched the world's first product, the "Shockwave Balloon Catheter."

▪ In 2022, Johnson & Johnson acquired Abiomed, a medical device manufacturer, for $16.6 billion. The company's flagship product is the Impella heart pump.

In September 2023, Johnson & Johnson announced a brand renewal, integrating its medical technology and pharmaceutical businesses under the Johnson & Johnson name. Among them, the pharmaceutical business Janssen was renamed Johnson & Johnson Innovative Medicine. This pharmaceutical company has been de-emphasizing its cardiovascular and metabolic businesses, narrowing its R&D focus to three therapeutic areas: oncology, immunology, and neuroscience.

Johnson & Johnson Conducted Multiple Acquisitions and R&D Activities in 2024, Including Acquiring Immunology Bispecific Antibody Assets from Proteologix, Obtaining IL-4R/IL-31 Bispecific Antibody through the Acquisition of Numab, and Developing Next-Generation ADC Products by Acquiring Ambrx. A company spokesperson stated that these are necessary measures for Johnson & Johnson to adapt and grow its business in a complex and rapidly changing external environment.

In recent years, focusing has become a continuous initiative for Johnson & Johnson, and its expansion efforts in key areas have also been frequent.

In May 2024, Johnson & Johnson announced that nearly a year after spinning off and listing its consumer health business Kenvue, it plans to sell its entire remaining 9.5% stake in Kenvue, completely exiting the consumer health sector.

At this point, Johnson & Johnson has completed a series of adjustments, including the divestiture of its consumer business, corporate brand renewal, and major acquisitions. A "new Johnson & Johnson" is now fully focused on the two fields of innovative pharmaceuticals and medical technology.

Financial Performance: Johnson & Johnson's Q2 2024 earnings report shows that its Q2 revenue reached $22.45 billion, a year-over-year increase of 4.3%. The total revenue for the first half of the year was $43.83 billion, marking a year-over-year growth of 3.3%. Among this, the medical technology business reported Q2 revenue of $7.957 billion, up 2.2% year over year. Its four business lines showed relatively balanced growth, with the cardiovascular business line achieving a year-over-year increase of 15.6%.

Johnson & Johnson Achieved Steady Growth in the First Half of the Year and Actively Expanded Its Business Through a Series of Mergers and Acquisitions. Johnson & Johnson Forecasts Operating Revenue to Reach $89.4 Billion in 2024, Representing a 6.4% Increase from the Previous Year.

Public information shows that Johnson & Johnson, established in 1886, is one of the most comprehensive healthcare enterprises globally with a wide range of business operations across three major fields: medical devices, pharmaceuticals, and consumer goods. As one of the first multinational corporations to enter the Chinese market since the reform and opening-up, Johnson & Johnson holds a pivotal position in China's medical industry.

Notably, Johnson & Johnson China previously announced that Edward Zhou (Zhou Mintao) will assume the role of President of Johnson & Johnson Medical Technologies China, leading the advancement of the "Radiant Win" 2030 strategy and accelerating business growth.

It should be noted that in recent years, due to the constantly changing global market environment, multinational device companies have been accelerating adjustments and transformations to enhance competitiveness.

From 2023 to the present, the global technology industry remains under the pressure of an economic downturn, and medical technology is no exception. Against this backdrop, "cost reduction and efficiency enhancement" has become an inevitable move for corporate survival, with a series of measures such as layoffs, pay cuts, spin-offs, business adjustments, and reductions in employee benefits taking turns to unfold. As the medical industry continues to evolve and competition intensifies, layoffs have become a common phenomenon in the medical device industry.

Among these, Johnson & Johnson has never stopped its innovative transformation through various methods such as spin-offs, reorganizations, and mergers and acquisitions. So, how will Johnson & Johnson achieve substantial and robust growth moving forward? Amid the industry's wave of layoffs, will Johnson & Johnson further reduce its workforce? The commentator will continue to monitor these developments.