The restructuring, which applies to J&J’s Innovative Medicine business (formerly its pharmaceuticals division), was disclosed in the company’s second-quarter 2026 earnings report.
The company recorded $200m in restructuring costs during the quarter, primarily related to asset impairments and also expects total charges of between $650m and $750m through fiscal year 2029.
The costs will cover activities including site decommissioning, further asset impairments and supplier exit costs.
J&J has not yet revealed which manufacturing facilities will be affected.
The move comes alongside the company’s previously announced $55bn investment in US manufacturing, research and development (R&D) and technology infrastructure through to 2029.
The investment programme is intended to increase domestic production capacity, with J&J aiming to manufacture the majority of its advanced medicines for US patients within the country.
As part of the expansion, J&J has announced several major manufacturing projects, including a more than $2bn biologics facility in Wilson, North Carolina and a $1bn-plus next-generation cell therapy manufacturing site in Pennsylvania.
The company has also committed more than $1bn towards expanding vision product manufacturing, packaging and distribution capabilities in Jacksonville, Florida.
The firm's supply chain restructuring highlights a broader trend among pharmaceutical manufacturers seeking to balance investment in new, advanced manufacturing capacity with optimisation of existing facilities.
As companies increasingly invest in biologics, cell and gene therapies and other complex medicines, manufacturers are reassessing legacy infrastructure and production networks.
Despite restructuring costs, J&J reported strong second-quarter performance, with sales of $25.3bn, up 6.6% from the previous year.
The company also raised its full-year outlook, targeting sales of approximately $101bn in 2026.
“With raised guidance and quarterly sales surpassing $25bn, we are on track to meet our 2026 target of more than $100bn in annual revenue for the first time in our company’s 140-year history,” said J&J CEO Joaquin Duato.
The restructuring is expected to continue until 2029, as J&J works to align its pharmaceutical manufacturing network with its long-term US production strategy.
