Who's A Cash Cow? More Layoffs At LifeScan

Can you spell C-A-S-H C-O-W?  J&J spells it L-I-F-E-S-C-A-N.

I had covered LifeScan's last layoffs in October.  Seems there was more to come. 

Another 10% of the company, specially in the US division in Milpitas, is being shown the exit door, including the entire Business Development department.

LifeScan is doing well compared to the rest of the Blood Glucose Meters companies, specially in the US.  They are a $2 Billion company with manufacturing and operations in Milpitas (California),  Inverness (Scotland - at the tip of Loch Ness),  Mayaguez (Puerto Rico), and marketing and sales arms around the world.  And now, they are considered ripe for rationalization.

This makes sense, if you think of LifeScan as a cash cow.  J&J can continue to reap the profits from R&D mostly done 5 - 10 years earlier  (not talking about incremental changes to the product, of course),  as well as Business Development deals put in place as early as 10 years ago - including one that is supposed to be the product of the near future, out of Australia. 

With this in mind, only functions necessary to continue operations satisfactorily are needed; the rest can either be consolidated within J&J headquarters,  or gotten rid of altogether. 

The Business Development team has some outstanding people.  I'm sorry they need to look for new opportunities in this job environment.