Up to 400 workers at a Johnson & Johnson surgical suture plant in Scotland could be out of work. The company said it will close the plant as part of its medical devices unit restructuring plans revealed last year. The suture facility accounts for less than 6% of the company's global capacity.

Amanda Pedersen

Johnson & Johnson revealed plans last year to eliminate up to 6% of its medical device workforce, but the company stopped short of saying exactly what jobs would be on the chopping block.

This week 400 workers at the company's Ethicon site in Scotland were told the company plans to close the plant. The surgical suture facility there accounts for less than 6% of Johnson & Johnson's global capacity.

The company said it has triggered a consultation process with regional and local works councils regarding its intention to close the plant in Livingston, which is run by its Ethicon subsidiary.

"We have put forth these proposals in the interest of reducing complexity and increasing agility to better serve the needs of customers and patients in today's evolving healthcare marketplace," Johnson & Johnson said in a statement.

During the company's fourth-quarter earnings call in January, CEO Alex Gorsky said the company's medical device restructuring plan is on track to save the company between $800 million and $1 billion a year, with most of that savings being realized in 2018. Accelerating growth through innovation, portfolio management, and new business models is a near-term goal for J&J's medical devices business, Gorsky said.

"Our goal is to return to above-market growth by the second half of this year," Gorsky said. 

In addition to the company's restructuring plan, Gorsky said J&J also expects to more than double the number of new product launches this year compared to 2016, with more than 12 major launches planned. The company will also look to accelerate impact from recent acquisitions, like Torax Medical.

Like many of its peers, Johnson & Johnson has had to streamline its hospital-facing operations in order to align with the broader healthcare shifts toward value-based care.

Amanda Pedersen is Qmed's news editor. Contact her at [email protected].

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