Description: Johnson & Johnson plans to cut up to 7 percent of its workforce in order to generate cost savings needed to finance increasingly costly drug research and to weather future challenges, the diversified healthcare company said on Tuesday.

Source: Reuters.com

Date: 11/03/2009

Link: http://www.reuters.com/article/newsOne/idUSTRE5A229D20091103

Questions for discussion:

• Summarize the reasons for the cost cutting measures?
• Do you believe these decisions will result in long-term profitability? Explain your thinking.