Johnson & Johnson said it will cut costs by scaling back on its manufacturing footprints.
It said it began a supply chain restructuring program primarily in its Innovative Medicine segment, intended to "exit certain manufacturing locations as part of its optimization efforts to streamline operations," according to the company's latest earnings release.
The company didn't specify which manufacturing facilities would be impacted, and didn't respond immediately to a request for comment.
It said the program is expected to be substantially completed by the end of fiscal year 2029 with estimated costs between $650 million and $750 million, and include site and supplier exit costs, decommissioning and asset impairment costs. Restructuring expenses of $200 million, primarily related to asset impairments, were already recorded in the fiscal second quarter of 2026.
The restructuring comes as Johnson & Johnson continues to invest in other segments. Earlier this year, it announced a more than $1 billion investment in a cell therapy manufacturing facility in Montgomery County, Pennsylvania, and plans to establish a multibillion dollar manufacturing facility in North Carolina. Both facilities are expected to support up to 500 jobs.
Last month, Johnson & Johnson committed another $1 billion in Jacksonville, Florida to strengthen its Vision operations by scaling U.S.-based manufacturing, packaging and distribution capabilities. The investment includes construction of a new distribution facility, alongside advanced manufacturing and packaging technologies to expand capacity and meet growing demand for the Company’s market-leading ACUVUE-brand contact lenses.
