As you may have seen, on Monday, Johnson & Johnson announced a cost savings program. A press release about the decision release can be found on the Johnson & Johnson website along with a webcast of the analyst call, but I thought I would share with you some excerpts from the letter that Bill Weldon sent to Johnson & Johnson employees.
In his letter, he explained why the company is taking these steps:
We have talked with you and with the investment community recently about our first half 2007 results, the promising growth opportunities ahead for Johnson & Johnson and our plans to continue investing for the future. Our mission of bringing health and well-being to people around the world is a critical one, and one that we are all pursuing for the long-term. Over the shorter term, as you are aware, we do face specific challenges associated primarily with market changes and loss of patent exclusivities.
Explaining some of the plans, Bill said the following:
Consistent with our decentralized model, initiatives are being implemented at operating company and divisional levels to be certain our businesses can address the needs of the customers they serve on a day-to-day basis. Cost savings will be achieved across a wide base of activities, including accelerating steps to standardize and streamline some enterprise-wide functions, and a reduction in the number of positions, especially in Pharmaceuticals and Cordis. Affected employees are being informed in more detail by their own business leaders.
He went on to say:
These are difficult issues, but ones we are addressing to ensure the long-term strength of our business. While most colleagues will not be personally impacted by these actions, some jobs will change and some positions will be eliminated.
As we reduce our cost base, we will also concentrate on improving our operations. We will continue investing in growing our businesses as well as in new technologies and product opportunities.
Just wanted to pass this on...