Johnson & Johnson is undergoing a restructuring of its supply chain, primarily in its innovative medicine segment, according to a July 15 earnings release.
Begun in fiscal Q2 2026, the initiative involves the exit of certain manufacturing locations as the company attempts to streamline operations, per the release. Johnson & Johnson did not immediately respond to a request for additional information about which facilities it planned to exit.
Johnson & Johnson expects to complete the project by the end of fiscal year 2029, with related costs estimated to reach up to $750 million driven by charges tied to site and supplier exits, decommissioning and asset impairments. The company already incurred $200 million in restructuring expenses for the effort in fiscal Q2, mostly related to asset impairments.
As Johnson & Johnson rearranges its innovative medicine supply chain, it has been making major investments in domestic production elsewhere across the business.
Last month, the medical product manufacturer said it would spend $1 billion to construct a contact lens manufacturing plant in Jacksonville, Florida, over the next two years. The company also laid out a plan to invest $55 billion in U.S. production in January, including a cell therapy manufacturing site in Pennsylvania and a drug facility in North Carolina.
