Over 200 employees of J&J were terminated yesterday. 120 through attrition and 80 that were fired.
Among those who were let go was an employee that has multiple sclerosis. Another has severe cardiac problems that have required an implantable defibrillator. Another employee was 14 months away from qualifying for retiree medical coverage. And one was let go just 5 weeks from being eligible for early retirement after 29+ years of service at J&J. These are all good people who were very productive in their jobs.
What is especially bad is HOW they were informed of their separation from J&J. After a conference call on Monday with the head of North American Pharmaceutical operations during which an announcement was made of several people being promoted, not one word was uttered about the pending cutbacks and how they would be communicated to seperated employees.
Two hours after the conference call, E-mails were sent to the employees who lost their jobs. The so called "Leader" of North American pharmaceuticals did not even have the courtesy to announce beforehand that this would happen.
So much for the CREDO. It is dead...
price_of_oil gets it! If you aren't working there now, or never worked there, then you really have no clue. the big expense is the retiree health care. you MUST be an ACTIVE employee at age 55 to get it. In past reductions, JnJ would take people that were close, and let them stay till they turned 55. They have stopped doing that, and a lot of the departments and people that they are elimating have been there 20-25 years, BUT are only in their early 50's. These people are SCREWED.
on the pension, the difference between retiring at 55 and 62 is HUGE. It depends on what you are makeing, if you are a normal working person, it can be as high as a $20-$30K per YEAR cut. As directors and above never get laid off, I don't know what their cut would be.
I agree. People outside of JNJ don't get the whole picture. As my mananger discussed at a meeting a few months ago, JNJ employees are paid less than they would make somewhere else, but people accept the lower pay because of the promise of a good pension...the exact quote was "getting your money on the back end instead of up front."
The difference between being laid off at age 52 verses age 60 is a huge reduction in the pension to be received for the rest of your life. If you go online to the pension estimator, the pension pretty much doubles between age 55 and age 60.
That's why JNJ is targeting employees in their early 50s. First, you don't get access to lifetime healthcare (which requires a good size employee contribution, but it does guarantee access to health insurance), and JNJ dramatically cuts their pension obligation to that employee.
Having said all that, it looks to me like most major companies are going to be eliminating their pensions in the next 5-10 years. There will be a generation of employees who were dedicated, loyal employees who are going to have the rug pulled out from under them. The 20-year-olds of today who have absolutely no loyalty and change jobs every 2-3 years to jump to the next higher income opportunity have it all figured out.
If a JNJ employee stays for less than 5 years, JNJ has no pension obligation at all and I don't believe the 401K contributions made by JNJ are vested at that point, either. What I am seeing in my operating company seems to indicate that this is the new direction for JNJ: the goal is to keep employees less than 5 years. Getting rid of the pension as it exists now would guarantee that kind of turnover, and I think it will be the next step JNJ and pretty much all major companies take next.
As usual marianhwang has no clue about working for JnJ. (or anything else involving JnJ for that matter) Most of these people started working there 20-30 years ago, when it was a great place to work. They worked themselves into positions that paid very well. They aren't going to just go out and get a job that can replace that income. The jobs just aren't out there. JnJ has them over a barrel. They have to stick aound and pray that they make it year to year.
Meanwhile, the Directors, Exec Directors, VP, and above are all collecting huge bonuses, and stock options, while Mgr's and below are getting let go by the hundreds. Weldon and his cronies in teh Tower haven't had an original idea since they got there. BMS laughed all the way to the bank when JnJ "stole" Poon. If these people had been in charge during the Tylenol nightmare, JnJ would be long out of business.
Not sure why the surprise? The announcement for head count reductions was made 2 months ago. 4800 positions from JNJ. Centocor employees were told last week, but the media has ignored it. No local coverage.
That is why the stock is rising. Cut the work force, increase the bottom line and the stock goes up. Bad news for employees, good news for the share holders.
I don't think "largess" is an accurate description. I actually WORK and EARN the compensation that I receive from JNJ. Believe it or not, without the employees there would be no JNJ....
layoffs are always tough -but it's good for the business- I am sure most got nice severences as this is a big company - some laid off were probably not well liked by their reports - it's a good thing that some toxic people and dead wood were purged - but some good ones get sacked and that's painful. life goes in- american business today...............
Being well liked has NOTHING to do with it. JNJ legal in concert with HR made cuts across the board considering GENDER, AGE, RACE, etc. Their goal was to make it "Neutral" to prevent lawsuits.
Listen to this. We were told on a group conference call that your PERFORMANCE RATING over the last two years would NOT be considered in this downsizing in our group.
So, I am still here, This year, when the RATINGS are applied, I will tell my supervisor to give me whatever rating he wants, because BASED UPON HISTORY, it will not be a factor in the NEXT downsizing in 2008.
It's absurd...... Employees with high performance ratings were let go. Others with "performance problems" were kept...
What has the CREDO got to do with it? There's nothing in the CREDO that says that employees can't be laid-off. It does say that they need to be treated with respect, which is what happened. They received generous severance packages, allowed to continue working while they look for jobs (most companies walk you out immediately) and they've been given access to outplacement resources and assistance. What's the problem here?
marianhwang has no clue what she is talking about. there were no generous buy outs,(at least not in the working ranks. maybe in the Director and above ranks) just the usual 2 weeks for every year. people are gone in November, wow, 1 month to replace a 20+ year job, and JnJ screwed a bunch of people with 20+ years of service (even some with 30+ who are not yet 55.) That means they can NEVER get retire health benefits as you must be an active employee on your 55th birthday to get them. Not to mention how much of a hit they will take on their pension benefits.
You must have missed this line in the Creedo that says "They must have a sense of security in their jobs" They sure as hell don't have that unless they work in the tower!
Wow! 80 fired out of 122.200 employees (Number from Yahoo�s J&J Company profile page). To put this in some actual perspective: from a random sampling of that same amount of people in North America more than 1/4 or 20 people just up and died yesterday so 80 fired if even true is no big deal!!!. By the way what does this have to do with anything other than your poor attempt bashing this company? As a longtime stock holder of J&J, far more �dead weight� needs to be cut to make any noticeable difference in the bottom line. This is a business Period!! Sorry, people will always lose jobs no matter what.
Problem is, the "dead weight" is never cut. Ever work in a place that is downsizing? The good old boys hang on and protect their jobs and their friends. People actually doing work are the ones let go. Beleive me.
Rumors has it that this is only the beginning, 5000 is the target I heard. They have just closed 2 pharma companies ALZA and SCIO that they bought not that long ago. So where's the innovation and where's the next blockbuster going to come from?