JNJ · 10-Q · 2026Q2 · Full report

Headcount / Restructuring

JOHNSON & JOHNSON · 2026-07-23 · Importance 46 · Surprise 42 · In source text

Johnson & Johnson initiated a supply chain restructuring program in the fiscal second quarter of 2026 to exit certain Innovative Medicine manufacturing locations and streamline operations. The program is expected to be substantially complete by the end of 2029 and is estimated to cost $650 million to $750 million, including site and supplier exits, decommissioning, and asset impairments. The Company recorded $200 million of restructuring expense in the fiscal second quarter, primarily for asset impairments. The Surgery restructuring program had $114 million of fiscal six-month 2026 expense and is expected to be completed by the end of fiscal 2026 at total costs of $600 million to $700 million.

Key facts

• In the fiscal second quarter of 2026, the Company initiated a supply chain restructuring program primarily in the Innovative Medicine segment to exit certain manufacturing locations; the program is expected to be substantially complete by the end of 2029 with estimated costs between $650 million and $750 million. source
• A restructuring program of the Surgery franchise initiated in fiscal 2025 has estimated total program costs between $0.6 billion - $0.7 billion and is expected to be substantially completed by the end of fiscal year 2026. source
• The Orthopaedics franchise restructuring (initiated in fiscal 2023) will be completed as of the fiscal fourth quarter of 2026 at a total project cost of approximately $1.0 billion. source
• Restructuring expenses of $200 million, primarily related to asset impairments, were recorded in the fiscal second quarter of 2026. source

Impact estimates