Q4 Layoffs & Paycuts

Any news here?

 

We all know it's coming. J&J is in major cost cutting mode. This will be in the form of divesting companies, continued layoffs, more reductions in benefits (retirement medical, pension, etc.), and reductions in the compensation/bonus programs. It's all about driving the stock price up and increasing shareholder value. All of these changes make J&J just like working for any other company and there are better employment/career options out there. For those of us who have been with J&J for many years, time to wake up and realize the J&J we worked for is no longer. Time to move on. It was good while it lasted.

 

Internally they have already announced pension reform. most also took a pay cut Q1. No one wants to work for peanuts.

 

J&J might have overplayed their hand cutting the pensions which was the only reason why the majority of people have stayed with them. Who needs a company that is always cutting headcount the moment share drops? One of the worst companies in the industry to work for because they are so unstable and their workers are so volatile.

 

How ironic the company known for Corporate Socialism is talking pension reform?

 

I just got the inside scoop from HR today regarding some upcoming changes soon to be announced. Major changes in the compensation bonus plan with substantial reductions in the bonus opportunity ranges as well as a HUGE cutback on the LTI program.

Another major hit is the reduction in the separation pay formula. Rumor is one week per year of service moving forward for all layoffs/workforce reductions.

 

Sounds like that would be in-line with J&J policies.

 

They have already made revisions to the bonus compensation at HQ

 

Come to Biomet where all of your wildest dreams come true.

 

Sure, JNJ is making longterm changes to plans in effort to maintain profitability for the future. This model will surely work downstream into other MD&D and Pharma companies. JNJ is just taking the heat for making the moves now. Pension benefit has changed, but only for new hires after Jan 1 2015. Everything is changing. Even if the money isn't as good as it once was, i don't see people leaving the industry. We all have the choice, if you don't like it, go find something you feel is better.

 

I have left and found something better. I only come on here to gloat.

 

The first announcement regarding the pension impacts future hires, but the next announcement will be changes/elimination of the pension for existing employees. Vested (five years of service) employees will retain their current pension credited earnings, but will future contributions to the pension program will cease. Additionally, you will see changes to the 401K savings plan match. Also, the retiree medical program point system is the first step for additional changes to come. The changes in this program overtime will be designed to push people to the current government health exchange programs. Another huge change in addition to the changes to salary ranges and bonus opportunity (both cash bonuses as well as LTI) is a significant change to the current separation pay formula. J&J will no longer be providing two weeks for every full year of service to displaced employees and this will be reduced to one week for every full year of service. These are among the many changes that are helping to shape the new J&J. The ability to attract and retain talent will clearly be impacted by these changes.

 

Show off... How dare you come on here and attempt to make valid points. I think your cup of Kool-Aid needs to be topped off. Remember, "everything will be fine." Now drink up.

 

CMF division being wiped out and trauma carrying product line? This place is goin down in flames unless you are an almighty trauma rep.

 

what is happening to the cmf division? I worked here years ago and did quite well in that division. then again i was in a major metro area.

 

JNJ - doesn't see any value in maintaining this division and inturn has merged it with trauma, while laying off 50 people resulting in a much lowere COS.

 

All of this is quite possible but then even J&J is not dumb enough to realize that other companies pay more than them and people stay because of the golden handcuffs. No golden handcuffs equals large turnover and they are at a very vulnerable place now

 

All of this is quite possible but then even J&J is not dumb enough to realize that other companies pay more than them and people stay because of the golden handcuffs. No golden handcuffs equals large turnover and they are at a very vulnerable place now

 

The bleeding of talent is already starting across all J&J operating companies now that the employment market has improved. As a previous post stated "J&J overplayed their hand" with all the changes they've made stipping away compensation and benefits substantially reducing the value proposition that employment with J&J offers. Gorsky and Fasolo have underestimated the impact these changes will have in the ability to attract and retain the best and brightest talent. While the exiting of top talent is concerning, even more concerning is the employees who are staying, but are now much less engaged after many of the beneifts of working for J&J are being stripped away.

 

Look for more layoff announcements at DePuy Synthes and other companies within J&J's medical device sector. DePuy Synthes will be half its current size within 3 years.