Johnson & Johnson to Slash 4,100 Jobs

Johnson & Johnson said it will eliminate 4,100 jobs, or 4% of its work force, to free up money for research and development amid a slowdown in sales. The New Brunswick, N.J.-based company, which makes drugs and is the world’s largest maker of medical devices, said the cuts will be made during the next 18 months by closing 36 of its 158 manufacturing plants. The plant closings will be about evenly split between the medical products and consumer product divisions, with minimal impact on the pharmaceutical segment, a company spokesman said. About 2,500 of the job cuts will be in the U.S. J&J; said it will take an $800-million charge against fourth-quarter earnings as a result of the moves, which it expects will save $250 million to $300 million. J&J; has been struggling to cut costs and raise sales after losing its near-monopoly on U.S. sales of coronary stents, used to prop open arteries. The charge will also help cover expenses of another move to pump up sales, J&J;’s $3.5-billion purchase last month of orthopedics-maker DePuy Inc. The announcement came after the close of trading on U.S. markets. J&J; closed at $79.56, down 94 cents, on the New York Stock Exchange.