Former HealthMedia lays off workers in Ann Arbor as part of company restructuring
Johnson and Johnson’s Wellness and Prevention, Inc., formerly HealthMedia, has shrunk by about a third during a re-organization this month. Johnson and Johnson acquired the company, founded in 1998 in Ann Arbor, in 2008.
Sanjay Gupta took over as president of HealthMedia in 2010.
Melanie Maxwell | AnnArbor.com
“Those positions impacted were spread around our sites in Ann Arbor, Orlando, and Fort Washington, Pa., as well as employees who work remotely.”
Kenney would not say exactly how many lost their jobs in the process, though she said it was slightly fewer than 50 people. She said new positions were also created, including some in Ann Arbor, as a result of the reorganization. The move comes on the heels of approximately 30 contractors being let go earlier in the month, bringing the total job losses to closer to 80 people.
Kenney said that the company has experienced steady annual growth for each of the past four years since the acquisition by Johnson and Johnson, and that it anticipates another year of steady growth in 2012.
“We have continued investment and support from Johnson and Johnson, and we are positioned for further positive growth in the future,” she said.
The former AnnArbor.com Deals of the Year Company of the Year winner was founded as a spinoff from the University of Michigan tech transfer office and attracted local venture capital, including an investment from Governor Rick Snyder’s former firm Avalon Investments.
The company had approximately 140 people at the time of its acquisition and after the recent reduction in force is estimated to have approximately 150 full- time employees.
Ben Freed covers business for AnnArbor.com. Reach him at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2
Comments
Brad
Fri, Sep 28, 2012 : 8:52 p.m.
im·pact·ed/im?paktid/ Adjective: 1.Pressed firmly together, in particular. 2.(of a tooth) Wedged between another tooth and the jaw. I wonder which of those happened to their positions?
xmo
Fri, Sep 28, 2012 : 8:15 p.m.
Is this a sign of economic recovery? "Kenney said that the company has experienced steady annual growth for each of the past four years since the acquisition by Johnson and Johnson, and that it anticipates another year of steady growth in 2012."
music to my ear
Fri, Sep 28, 2012 : 7:36 p.m.
reorganization translate: we found someone to do your job at half your cost. who knew!!!!! we are positioned for future positive growth in the future, translate;we are greedy and dont care that your life is going to be turned upside ,down inside out , because of your job loss we really need to keep all our profit, and then some. I know this because it happend to me and is now getting to be the American way.it will take some time for those of you who lost and are losing your jobs one door closes another one opens.sometimes you have to knock a little harder.
lumberg48108
Fri, Sep 28, 2012 : 8:44 p.m.
In this case, I think you are incorrect. It is normal for layoffs to happen when a large company buys a smaller one. Redundant positions need to be eliminated as guess who wins? Corporate or the former small business? The PR lady quoted in the story is based out of Boston. They don't need Healthmedia's HR people anymore either and J & J has a huge HR office. Marketing? Probably done at corporate! And so one. So yes, the layoffs are hard for those "impacted: but normal when these acquisitions happen and a part of the business cycle. I am sure the writing was on the wall when J & J bought the company a few years back. I highly doubt J & J is hiring people "for half the costs" to replace these workers, as you implied. But I could be wrong.
SEC Fan
Fri, Sep 28, 2012 : 6:15 p.m.
too bad they'll never tell us how much of their "growth" was attributable to laying off 1/3 of their workforce. Is "growth" defined as an increase in sales or profits?
say it plain
Fri, Sep 28, 2012 : 7:51 p.m.
I think that "increased profits" is the MBA-accepted definition of "growth"!
smokeblwr
Fri, Sep 28, 2012 : 5:34 p.m.
"Impacted". Stupid. A colon gets impacted. People get laid off. Or fired.
Barb
Fri, Sep 28, 2012 : 5:02 p.m.
..."it did result in some impacted positions..." I love how they try to reword it so they think it sounds better. Laid off is laid off. I just hope their severance is generous.
David
Fri, Sep 28, 2012 : 5:54 p.m.
"We had a shark that apparently injured some bathers..." --Mayor of Amity Island (from the movie JAWS)
David
Fri, Sep 28, 2012 : 4:45 p.m.
Anymore such "impacted" wisdom and they will have to be pulled.
say it plain
Fri, Sep 28, 2012 : 7:49 p.m.
that word causes so very many pains lol!
Dcam
Fri, Sep 28, 2012 : 4:20 p.m.
"Kenney said that the company has experienced steady annual growth for each of the past four years since the acquisition by Johnson and Johnson, and that it anticipates another year of steady growth in 2012. "We have continued investment and support from Johnson and Johnson, and we are positioned for further positive growth in the future," she said." Too bad 1/3 of the payroll had to go, however. As Pyrrhus might say, any more such growth and we will be lost.