DePuy Synthes, part of Johnson & Johnson, plans to shut down part of its operations in Monument, Colo., according to The Gazette.
Here are five things to know:
1. DePuy Synthes formed a strategic alliance with outsourcing manufacturer Jabil.
2. Jabil will begin manufacturing orthopedic and neurological products for DePuy Synthes in 2019. Some Monument employees will be transferred to Jabil.
3. As of 2017, the Monument plant comprised 1,000 employees and contractors who made products for joint reconstruction, trauma, spine and sports medicine, among other uses. With the restructuring, Johnson & Johnson expects to cut 2,600 jobs. The job cuts, however, are not related to the Jabil transfer.
4. Johnson & Johnson expects to save between $600 million and $800 million each year beginning 2022 because of the outsourcing deal.
5. By outsourcing, Johnson & Johnson estimates it will cost between $1.9 billion and $2.3 billion this year.