- Johnson & Johnson expects $650M–$750M in charges through fiscal 2029 to exit certain drug-manufacturing sites and streamline its Innovative Medicine supply chain, with $200M booked in Q2 2026.
- The restructuring runs alongside the company’s $55 billion US investment pledge and Q2 sales of $25.3 billion, up 6.6% year over year.
Johnson & Johnson said Wednesday it will spend as much as $750 million restructuring its pharmaceutical supply chain, exiting certain manufacturing sites to streamline operations as it advances a $55 billion pledge to expand US production. The company disclosed the move in its second-quarter earnings release on July 15.
J&J booked $200 million in restructuring costs during the quarter, tied mainly to asset impairments, according to the earnings release. It expects total charges of $650 million to $750 million through the end of fiscal 2029, covering decommissioning, further impairments, and site and supplier exit costs. The restructuring applies to Johnson & Johnson Innovative Medicine, formerly the company’s pharmaceuticals division.
J&J has not identified which sites it will close. Endpoints News reported that the company declined to say which facilities it is exiting or whether the resulting savings are intended to fund its US onshoring effort.
The consolidation runs in parallel with the $55 billion US investment J&J announced in March 2025, which the company says will let it manufacture the vast majority of its advanced medicines domestically. Recent commitments under that pledge include roughly $1 billion for vision-product manufacturing, packaging, and distribution in Jacksonville, Florida, a $1 billion cell therapy facility in Pennsylvania, and a $2 billion biologics plant in Wilson, North Carolina.
J&J disclosed the restructuring in the same earnings report in which it raised full-year guidance. J&J reported Q2 sales of $25.3 billion, up 6.6% from a year earlier, and lifted its 2026 outlook to about $101.1 billion. “With raised guidance and quarterly sales surpassing $25 billion, we are on track to meet our 2026 target of more than $100 billion in annual revenue for the first time in our Company’s 140-year history,” CEO Joaquin Duato said in a statement.
