Jabil Strategic Collaboration

No surprise that a deal like this was made as JNJ leadership said they expect to generate $0.6 billion to $0.8 billion in savings by 2022. There is still no mention of what happens to the people affected. My fear to anyone in the supply chain at JNJ is that eventually those people won't have jobs.

Jabril will want a nice margin as well, so what happens to product costs in the two businesses with products mentioned(Depuy and EES). They have to go up, no?

Or are they going to eventually divest those businesses?

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The Depuy people are upset about it too.

which would make perfect sense.

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JNJ expects to save between $600 million and $800 million each year beginning 2022 because of this outsourcing deal.

The Depuy people are upset about it too.

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Long-term, the goal is to manage all manufacturing through Jabril or a similar outsourcing partner.

The org is going risk-off.

JNJ expects to save between $600 million and $800 million each year beginning 2022 because of this outsourcing deal.

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JNJ should just sell all of the MD&D business to Jabil.

Long-term, the goal is to manage all manufacturing through Jabril or a similar outsourcing partner.

The org is going risk-off.

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This deal is massive for Jabil, and like you said, will mostly cover endo, spine and trauma. To put the size of the deal into perspective, here's what Mondello had to say about what JNJ is bringing to Jabil's business.

"Integration cost and charges directly associated with the deal will be in the range of $80 million. The real interesting part about this deal is that the cash outlay will largely be applied to working capital and inventory," Mondello said on the call. "We believe the annual revenue will grow to an excess of $1 billion annually."

The annual revenue of $1B that Jabil is projecting is coming from JNJ and the divisions being divested. Adios loyal employees.

JNJ should just sell all of the MD&D business to Jabil.

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This deal is massive for Jabil, and like you said, will mostly cover endo, spine and trauma. To put the size of the deal into perspective, here's what Mondello had to say about what JNJ is bringing to Jabil's business.

"Integration cost and charges directly associated with the deal will be in the range of $80 million. The real interesting part about this deal is that the cash outlay will largely be applied to working capital and inventory," Mondello said on the call. "We believe the annual revenue will grow to an excess of $1 billion annually."

The annual revenue of $1B that Jabil is projecting is coming from JNJ and the divisions being divested. Adios loyal employees.

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This explains everything to a T --

Look at the list of facilities sold to Jabil, they're all Synthes & EES Endomechanical sites. JNJ is divesting Synthes & the EES Endomechanical business. JNJ doesn't want to admit that the acquisition of Synthes was a mistake, so to save face all the Synthes facilities are being sold to Jabil. Once Jabil owns the Synthes facilities, JNJ will start rationalizing all the Synthes product codes, thus completing the death of Synthes. The EES Endomechanical business was struggling because it's become a low-margin commodity business, which JNJ wants to exit. Instead of selling the business to private equity or to a competitor, killing the business by giving it to Jabil & rationalizing the product codes is how JNJ plans on dumping it. Jabil is an expert when it comes to layoffs, so Jabil can dispose of the 6000 employees affected, otherwise it would be bad PR for JNJ if JNJ suddenly laid off 6000 employees .

This deal is massive for Jabil, and like you said, will mostly cover endo, spine and trauma. To put the size of the deal into perspective, here's what Mondello had to say about what JNJ is bringing to Jabil's business.

"Integration cost and charges directly associated with the deal will be in the range of $80 million. The real interesting part about this deal is that the cash outlay will largely be applied to working capital and inventory," Mondello said on the call. "We believe the annual revenue will grow to an excess of $1 billion annually."

The annual revenue of $1B that Jabil is projecting is coming from JNJ and the divisions being divested. Adios loyal employees.

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This explains everything to a T --

Look at the list of facilities sold to Jabil, they're all Synthes & EES Endomechanical sites. JNJ is divesting Synthes & the EES Endomechanical business. JNJ doesn't want to admit that the acquisition of Synthes was a mistake, so to save face all the Synthes facilities are being sold to Jabil. Once Jabil owns the Synthes facilities, JNJ will start rationalizing all the Synthes product codes, thus completing the death of Synthes. The EES Endomechanical business was struggling because it's become a low-margin commodity business, which JNJ wants to exit. Instead of selling the business to private equity or to a competitor, killing the business by giving it to Jabil & rationalizing the product codes is how JNJ plans on dumping it. Jabil is an expert when it comes to layoffs, so Jabil can dispose of the 6000 employees affected, otherwise it would be bad PR for JNJ if JNJ suddenly laid off 6000 employees .

Incredibly well said.

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Getting rid of the entire supply chain saves an incredible amount of money over the long-term. Start looking for a new job now because Gorsky is on a mission.

How about get rid of Consumer, saving millions for the company by firing Consumer management and support.

Problem solved.

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The supply chain AND IT are both being aggressively reduced and removed from JNJ.

This explains everything to a T --

Look at the list of facilities sold to Jabil, they're all Synthes & EES Endomechanical sites. JNJ is divesting Synthes & the EES Endomechanical business. JNJ doesn't want to admit that the acquisition of Synthes was a mistake, so to save face all the Synthes facilities are being sold to Jabil. Once Jabil owns the Synthes facilities, JNJ will start rationalizing all the Synthes product codes, thus completing the death of Synthes. The EES Endomechanical business was struggling because it's become a low-margin commodity business, which JNJ wants to exit. Instead of selling the business to private equity or to a competitor, killing the business by giving it to Jabil & rationalizing the product codes is how JNJ plans on dumping it. Jabil is an expert when it comes to layoffs, so Jabil can dispose of the 6000 employees affected, otherwise it would be bad PR for JNJ if JNJ suddenly laid off 6000 employees .

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Getting rid of the entire supply chain saves an incredible amount of money over the long-term. Start looking for a new job now because Gorsky is on a mission.

The supply chain AND IT are both being aggressively reduced and removed from JNJ.

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Getting rid of the entire supply chain saves an incredible amount of money over the long-term. Start looking for a new job now because Gorsky is on a mission.

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