J&J beats on earnings but warns of potential job cuts

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Johnson & Johnson has posted better than expected third-quarter earnings on strong demand for its cancer drug Darzalex, but said it may still cut some jobs as it contends with inflationary pressure and challenges created by the strong dollar.

J&J Chief Financial Officer Joseph Wolk said the U.S. healthcare conglomerate is looking at"right sizing" itself, particularly as it moves from being a three-segment business to a two segment business through the spinoff of its consumer unit.

J&J said it was not immune to the affects of inflation on its business and the impact of a strong dollar, despite"healthcare being more resilient" than most industries. "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," Wolk told Reuters.

The share move was mainly due to macroeconomic and currency concerns which are not unique to J&J, said Edward Jones analyst John Boylan.

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