Johnson & Johnson - Top 10 pharma layoffs of 2011
Company: Johnson & Johnson ($JNJ)
Based: New Brunswick, NJ
Job cuts announced: up to 1,000
Date revealed: June 16
Theme: Cardiac stent sayonara
The scoop: Johnson & Johnson Cypher stents claimed a 51% share of the market as recently as 2006. In 2010, that market dominance all but evaporated, plunging to a humbling 16% as competitors cropped up with cutting-edge alternatives and cardiac stent placement declined. J&J took action, announcing in June that its Cordis unit would stop making the Cypher and Cypher Select drug-coated stents by the end of 2011. The move eliminates as many as 1,000 jobs and shuts down two factories, the company said.
J&J took a $500 million to $600 million charge against earnings, but the cuts had to be made, according to articles in Reuters, The New York Times and others, which noted that the move frees up J&J/Cordis to focus more on diagnostics and noncardiac stents.