Johnson & Johnson is restructuring its operations, leading to job cuts, including in Switzerland, where it employs over 5,000 people. Speculation about the closure of its DePuy Synthes headquarters in Zuchwil may result in around 100 job losses. While the company confirmed organizational changes for efficiency, it has not disclosed specific details. Despite stable overall revenue growth, J&J faces challenges in Europe and Asia, prompting potential structural adjustments across its Swiss locations.
Johnson & Johnson Restructures Operations, Impacting Jobs in Switzerland
The healthcare giant Johnson & Johnson (J&J) is undergoing a significant organizational restructuring that is set to lead to job reductions, including positions in Switzerland. With over 5,000 employees spread across nine locations in the country, J&J stands as one of the major industrial employers in the region. However, the company has opted not to comment extensively on these changes.
Speculation Surrounds Job Cuts and Closures
Recently, speculation emerged regarding the potential closure of J&J’s European headquarters for its subsidiary DePuy Synthes, based in Zuchwil, which could result in the loss of approximately 100 jobs. This speculation was fueled by a report from “Inside Paradeplatz” that circulated towards the end of last week.
In response to these rumors, J&J issued a brief statement from its headquarters in New Brunswick, New Jersey, confirming that it had enacted organizational changes aimed at enhancing business efficiency. The company assured that those affected would receive assistance in securing new roles within the organization or would have access to professional reorientation services.
Despite inquiries regarding specific positions and locations impacted by the restructuring, J&J remained tight-lipped, only indicating a need to adapt to a complex and swiftly changing market landscape.
As of late November 2024, J&J reported a workforce of 5,750 in Switzerland, which includes temporary employees from 90 different nationalities, with women comprising 53% of the total workforce. Over the last 15 years, the employee count has more than tripled.
Interestingly, much of this growth can be attributed to strategic acquisitions. The company made its initial foray into Switzerland in 1959 by acquiring the pharmaceutical firm Cilag in Schaffhausen, which continues to be a crucial site for biotech production with nearly 2,000 employees. Significant acquisitions include the $21 billion purchase of Synthes in 2011 and the $30 billion acquisition of Actelion in 2017.
Plans for a media event scheduled for November 5, 2024, to discuss recent investment projects were abruptly canceled the day before without any explanation.
Employee representation body Angestellte Schweiz has not yet received detailed information regarding the restructuring plans. In past instances, the organization has been engaged in discussions when J&J has divested certain business sectors, with spokesperson Laure Fasel noting that “discussions were possible, and industry-appropriate solutions could be found.”
At first glance, J&J’s business performance appears stable, as evidenced by a slight increase in the revenue forecast for the full year during their third quarter report in mid-October. Management is expected to report a year-over-year revenue growth of around 4% on January 22 when the annual figures are released.
However, J&J’s growth trajectory is uneven. In the first nine months of the previous year, revenue from the U.S., which accounts for 56% of the company’s total revenue, grew by 8%, and 11% for the entire year of 2023. In contrast, Europe saw a 1% revenue decline during the same periods.
With ongoing contractions, it would not be unexpected for J&J to necessitate structural adjustments across various Swiss locations. Besides Zuchwil, the company also operates from its international headquarters in Zug and Allschwil, the former base of Actelion.
Moreover, recent job cuts have also occurred at J&J’s headquarters in New Brunswick and in China, as the company faces challenges from increasingly competitive local providers that dominate public procurement processes in the medical technology sector. Revenue from Asia declined by 2% from January to September 2024, reflecting broader market pressures.