Johnson & Johnson (NYSE:JNJ) layoffs are on the way as the medical, pharmaceutical, and consumer goods company cuts jobs.
These layoffs have Johnson & Johnson cutting 350 jobs at its Auris Health and Verb Surgical robotic surgery businesses. The majority of these cuts come from Auris Health, which is reducing its headcount by 292 workers.
Johnson & Johnson entered the robotic surgery space in 2019 but hasn’t achieved the results it hoped for. That’s weighing on the company as it spent $3.4 billion to acquire Auris Health at that time.
Johnson & Johnson CFO Joe Wolk talked about the problem in an investor call earlier this week. Here’s what he said, as recorded by MedTechDive.
“We have to get better with the soft tissue robot, Ottava. We’re very excited. Our board is actually going out to visit that platform later this year. While we’re behind and while we certainly want to do better, we have a sense of urgency. We realize it’s very early in this game. So, about 5% of surgeries globally are done with robotic platforms.”
Johnson & Johnson Joins Layoffs Trend
Investors will note that Johnson & Johnson is far from the only company announcing layoffs recently. Several companies have been cutting jobs over the last couple of months. Specifically, tech companies are behind many of the layoffs.
This comes as the economy continues to weigh on both companies and consumers. The U.S. is dealing with months of inflation, putting pressure on markets, as well as increasing interest rates to try and combat it. There doesn’t appear to be an end in sight, which means more companies are likely to announce layoffs.
JNJ stock is up 1.1% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.