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The basics:

• J&J eliminating 56 positions effective Aug. 21
• Cuts tied to planned orthopedics business separation
• Orthopedics unit generated $9.2B in 2024 revenue
• Company raises full-year 2026 sales forecast

Johnson & Johnson is planning a round of layoffs at its corporate headquarters in New Brunswick.

In a filing with the state Department of Labor & Workforce Development, the health giant reported it will eliminate 56 positions, effective Aug. 21.

A J&J spokesperson said the reductions relate to the company’s planned divestiture of its orthopedics division from its medical technology division.

“As part of our ongoing efforts to operate efficiently and support long-term growth, we continuously evaluate our cost structure and organizational design. As we progress our orthopedics separation, we are focused on addressing stranded costs and identifying opportunities to further improve operating margins — helping enable continued investment in innovation for patients.

“Throughout this process, we are committed to treating employees with care and respect, including providing support and resources as decisions are finalized,” the media representative said.

J&J revealed plans to spin off the unit in October 2025. The move to establish orthopedics as a standalone entity comes as part of a play by J&J to focus its medtech business on faster-growing areas.

At the time, Johnson & Johnson said the separation and formation of a new company named DePuy Synthes is expected to occur within the next 18 to 24 months. Reuters recently reported that J&J is also exploring a potential sale of the orthopedics unit in a deal that could exceed $20 billion.

Breaking moves

Last fall’s announcement came about three years after J&J took a similar approach with its $15 billion consumer health unit.

Now headquartered in Summit, Kenvue’s brand portfolio includes Band-Aid, Neutrogena, Tylenol and Benadryl. In January, shareholders approved a $48.7 billion deal for Kimberly-Clark Corp. to acquire the J&J spinoff.

According to J&J, its orthopedic unit’s portfolio of surgical instruments and hip, knee and shoulder replacements, generated around $9.2 billion in 2024. The figure represents about 10% of total revenue.

Upon completion of the planned separation, DePuy Synthes would establish the largest, most comprehensive orthopedics-focused company, with leading market share positions across major product categories, J&J has said.

The change would also enable the company to focus on high-growth, high-margin areas, such as oncology, immunology, neuroscience, surgery, vision care and cardiovascular, according to J&J.

Company Chairman and CEO Joaquin Duato said he believes the divestiture “reflects our long-standing commitment to portfolio optimization and value creation.” Duato added that J&J is “confident that our Orthopaedics business will be better positioned to improve top-line growth and operating margins as a standalone business.”

For the first quarter of 2026, J&J beat Wall Street expectations with $24.1 billion in sales, a 9.9% year-over-year increase.

Pharmaceutical sales reached $15.4 billion. Meanwhile, oncology products generated approximately $6.97 billion and medical device sales totaled $8.6 billion.

Additionally, J&J raised its full-year 2026 sales outlook and now expects reported sales of about $100.8 billion at the midpoint.