Sector News

J&J Plans for the Future by Trimming Pension Benefits for New Hires

September 15, 2014
Life sciences
In its latest step to cut costs, Johnson & Johnson JNJ +0.03% will reduce pension benefits that are offered to employees who are hired – or rehired – after Jan. 1, according to an internal memo.
 
The changes, which do not apply to existing employees or retirees, were not detailed, but reflect the way the “benefit landscape has continued to evolve in recent years,” as well as “emerging trends” in employee career patterns and practices at competitors, writes Peter Fasolo, the J&J JJSF -1.22% worldwide vice president for human resources. A J&J spokeswoman confirms the memo was sent to employees.
 
“The changes will more closely align with benefits offered by our competitors and maintain a retirement program that’s above average among our peer companies,” he writes. “… More importantly, it will continue to support our efforts to attract and retain talent to drive innovation and growth across our family of companies, helping us manage for the long term.”
 
The move comes even as J&J, which sells a wide array of prescription drugs, medical devices and over-the-counter health products, continues to improve its financial performance. Sales in the second quarter this year, for instance, rose 9%, while earnings climbed more than 12%.
 
The healthcare giant has been attempting something of a turnaround, despite sluggish device sales and efforts to revive its over-the-counter business, which was plagued in recent years with embarrassing manufacturing gaffes that led to numerous product recalls.
 
The pharmaceuticals business, however, has been a stand out. In the second quarter, prescription drug revenue jumped 21%, thanks to sales of treatments for prostate cancer and psoriasis, among other. Over the past year, J&J stock has risen nearly 20%.
 
Like many other companies, though, J&J continues to cut costs. Earlier this year, the DePuy Synthes medical device unit eliminated all travel – except for sales reps – for the rest of this year in hopes of lowering those costs by 25% and meeting 2014 financial goals.
 
By Ed Silverman
 
Source: Pharmalot

Related News

July 31, 2021

Lonza positions collagen as “key” to future of joint health market

Life sciences

NutritionInsight speaks with Lindsey Toth, associate director of product management at DFS & Ingredients, Lonza Capsules & Health Ingredients.

July 31, 2021

Novo Holdings co-leads Hemab’s US$ 55M Series A to advance next generation therapeutics for bleeding and thrombosis disorders

Life sciences

The company was created in 2020 by Novo Seeds, which worked closely with the founders to develop a commercially attractive business plan to maximise the potential of Hemab’s promising technology platform.

July 31, 2021

BD acquires Tepha to drive new innovations in soft tissue repair and regeneration

Life sciences

BD (Becton, Dickinson and Company) announced today it has acquired Tepha, Inc., a leading developer and manufacturer of a proprietary resorbable polymer technology.

Send this to a friend