Johnson & Johnson stated impending job cuts due to inflation.

However, the company’s third-quarter earnings were higher than predicted.

It is mostly due to the high demand for its cancer drug Darzalex.

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But the world’s largest pharmaceutical firm grapples with the effects of the strong dollar.

J&J CFO Joseph Wolk said the US healthcare behemoth is considering “right sizing” itself.

It is particularly as the firm transitions from a three-segment to a two-segment business with the spinoff of its consumer unit.

That business, which is to be called Kenvue, is slated to be split off late next year.

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It will have many of the best-known brands from the company, like Tylenol and Band-Aid bandages.

Despite “healthcare being more resilient” than most industries, J&J said it was not resistant to the impacts of inflation and a strong dollar.

The company said a stronger dollar will lower 2023 adjusted earnings by 40 cents to 45 cents.

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Mr Wolk said: “We are looking at making sure that our resources are deployed on those projects, those initiatives, those services that really add the most value for our business.”

The business anticipates that certain inflationary pressures would diminish next year.

Yet, it cautioned that increasing inventory costs in 2022 might reduce earnings in 2023.

Source: Reuters

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