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Band-Aid Maker Kenvue Slashes Nearly 1,000 Jobs

By Nithya Bose in Business News, posted May 8, 2024

Kenvue, a former division of Johnson & Johnson, is laying off around 920 global staff.

The job cuts come as the service agreement with J&J comes to an end.

The consumer health company spun off from J&J a year ago.

Its board of directors recently approved a plan to reduce its global workforce by four percent from its 23,000-strong employee base.

These layoffs are associated with the end of a "transition service agreement" (TSA) with J&J, a detail highlighted in Kenvue’s earnings report for the first quarter.

Alongside this reduction, Kenvue aims to achieve $350 million in annual pre-tax gross cost savings by 2026.

A portion of these savings will be reinvested back into the company.

The layoffs and restructuring are expected to incur about $275 million in related charges.

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Paul Ruh, the CFO of Kenvue, said: “As we exit services under the TSA, these initiatives will structurally position Kenvue for success in the future and create long-term shareholder value.

“These initiatives will enable Kenvue to adjust its cost structure and ways of working to become more competitive.”

The company previously announced 51 layoffs in New Jersey in February and 84 in California set for April.

The restructuring reflects a broader industry trend with other pharmaceutical giants like GSK, Pfizer, and Merck, who have also spun off their consumer health divisions.

The move to separate from J&J and become an independent entity began with J&J's announcement in November 2021.

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