Kenvue plans numerous job cuts as service agreement with J&J nears end.

Kenvue is set to implement significant job reductions as its service contract with Johnson & Johnson (J&J) approaches its conclusion. This development marks a pivotal shift for the company as it transitions away from its longstanding partnership with J&J.

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Even a year after its separation from Johnson & Johnson, Kenvue has continued to provide specific services to the healthcare conglomerate during a transitional phase. However, with this arrangement ending, Kenvue is preparing to lay off hundreds of employees. 

On Monday, Kenvue's board of directors sanctioned a strategy to eliminate 4% of its global workforce, according to a press release. With around 23,000 employees at year's end, approximately 920 positions may be impacted by the layoffs. 

These reductions are tied to the conclusion of a "transition service agreement" (TSA) with J&J, as detailed in Kenvue's first-quarter financial report. Kenvue aims to achieve $350 million in annual pre-tax gross cost savings by 2026 through this initiative, intending to reinvest some of these funds. The company anticipates incurring $275 million in expenses due to the layoffs.

Source: Fiercepharma