Johnson and Johnson to restructure its Medical Devices strategy

Johnson and Johnson announced this week that it will take action to restructure and strengthen its Medical Devices businesses strategy.

The objective is to give better service to their customers and patients. The company will also devise plans to strengthen their go-to-market model, speed up the process of their innovations, make certain key platforms and geographic regions a priority, and continue to provide high quality standards while restructuring operations. Vision Care and Diabetes Care, both of which fall under Johnson and Johnson’s Consumer Medical Devices businesses, will not be affected by the changes.

The plan laid out by Johnson and Johnson is expected to save the company $800 million to $1 billion in pre-tax cost savings. The majority of these savings is predicted to be realized by the end of 2018, which includes $200 million in 2016. The money will be put toward investments and will fund new opportunities for growth. The company will also look to provide advanced resolutions to customer and patient needs.

Johnson and Johnson also stated that the plan will eliminate approximately 4 percent to 6 percent of the Medical Devices businesses’ workforce worldwide. These cutbacks will happen in the next two years as the plan comes to fruition.