Alza Corp. distributes layoff notices
By Shelly Meron/Business Writer
Article Launched: 09/26/2007 06:00:34
An unspecified number of Alza Corporation employees in Vacaville were given layoff notices Tuesday.
The job cut is part of a "cost structure" overhaul by Alza's parent company, Johnson & Johnson, that was first announced in July. It includes the layoffs earlier this summer of 600 employees and the transfer of 200 employees from Alza's Mountain View headquarters and from Scios, another Johnson & Johnson division, also located in Mountain View.
Johnson & Johnson would not discuss Tuesday how many employees were let go at the Vacaville plant Tuesday. The company's spokesman, Ernie Knewitz, said employees who were laid off received a 60-day notification Tuesday, as required by California law, but would not discuss what kind of severance packages they would be offered. Employees found outside the plant Tuesday would not comment on the layoffs.
Knewitz said the layoffs are part of the company's plan of "undertaking initiatives to restructure our cost base. We're assessing all of our programs to make sure that we have our resources best aligned to be focused on areas that will meet long-term objectives." He added that the Vacaville facility was "absolutely not going to close. It remains a major manufacturing facility for the organization."
Johnson & Johnson is preparing for patents to expire for several of its products in the coming years. The cost-cutting initiatives are expected to generate pre-tax savings of $1.3 billion to $1.6 billion in 2008, according to a Johnson & Johnson statement released in July.
Knewitz said the company will be offering free career-counseling services to employees who were laid off, including interview skills, resume assistance, and general career advice. Laid-off employees can also apply for other open positions within the company.
Johnson & Johnson is scheduled to release its third quarter earnings report on Oct. 16. The company's stock closed at $64.97 Tuesday, a decrease of 0.35 percent.
Shelly Meron can be reached at business@thereporter.com.
Article Launched: 09/26/2007 06:00:34
An unspecified number of Alza Corporation employees in Vacaville were given layoff notices Tuesday.
The job cut is part of a "cost structure" overhaul by Alza's parent company, Johnson & Johnson, that was first announced in July. It includes the layoffs earlier this summer of 600 employees and the transfer of 200 employees from Alza's Mountain View headquarters and from Scios, another Johnson & Johnson division, also located in Mountain View.
Johnson & Johnson would not discuss Tuesday how many employees were let go at the Vacaville plant Tuesday. The company's spokesman, Ernie Knewitz, said employees who were laid off received a 60-day notification Tuesday, as required by California law, but would not discuss what kind of severance packages they would be offered. Employees found outside the plant Tuesday would not comment on the layoffs.
Knewitz said the layoffs are part of the company's plan of "undertaking initiatives to restructure our cost base. We're assessing all of our programs to make sure that we have our resources best aligned to be focused on areas that will meet long-term objectives." He added that the Vacaville facility was "absolutely not going to close. It remains a major manufacturing facility for the organization."
Johnson & Johnson is preparing for patents to expire for several of its products in the coming years. The cost-cutting initiatives are expected to generate pre-tax savings of $1.3 billion to $1.6 billion in 2008, according to a Johnson & Johnson statement released in July.
Knewitz said the company will be offering free career-counseling services to employees who were laid off, including interview skills, resume assistance, and general career advice. Laid-off employees can also apply for other open positions within the company.
Johnson & Johnson is scheduled to release its third quarter earnings report on Oct. 16. The company's stock closed at $64.97 Tuesday, a decrease of 0.35 percent.
Shelly Meron can be reached at business@thereporter.com.
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