Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Troubled Tylenol plant to lay off 300 workers

By Parija Kavilanz, senior writer


NEW YORK (CNNMoney.com) -- The drugmaking arm of Johnson & Johnson said late Thursday that it is laying off hundreds of workers at the manufacturing plant at the center of a recall of millions of units of children's Tylenol, Motrin and other over-the-counter drugs.

Johnson & Johnson's (JNJ, Fortune 500) McNeil Consumer Healthcare division said 300 of more than 400 positions at the Fort Washington, PA facility will be eliminated as the company conducts a complete quality overhaul at the facility.

McNeil halted all production at the Fort Washington plant in early May this year after it recalled about 135 million bottles of children's and infant's Motrin, Tylenol, Benadryl and Zyrtec drugs made at the plant, due to quality concerns. The facility is the company's only plant that makes its liquid pediatric non-prescription drugs.

McNeil is also currently under investigation by the Food and Drug Administration and lawmakers over a string of recalls of its products over the past year, including the latest recall of children's drugs.

McNeil, which submitted what it called its "comprehensive action plan on quality improvement" for the Fort Washington plant to the FDA on Thursday, also said it will make a "significant investment in re-fitting its Fort Washington manufacturing facility with new equipment, and will reorganize the plant's operations." As a result, the company anticipates that the plant will be out of service for a "protracted period of time."

The company said it is taking steps to expedite production of many of the products that were previously produced at Fort Washington by utilizing other Johnson & Johnson plants.

However, McNeil had previously announced that most of the products made at the Fort Washington plant will not be available in stores before the end of the year. To top of page

Index Last Change % Change
Dow 16,528.03 -114.98 -0.69%
Nasdaq 4,776.51 -51.82 -1.07%
S&P 500 1,972.18 -16.69 -0.84%
Treasuries 2.20 0.01 0.64%
Data as of 6:40pm ET
Company Price Change % Change
Bank of America Corp... 16.34 -0.02 -0.12%
Freeport-McMoRan Inc... 10.64 0.14 1.33%
Apple Inc 112.76 -0.53 -0.47%
Intel Corp 28.54 0.12 0.42%
Ford Motor Co 13.87 0.13 0.95%
Data as of 4:02pm ET
Sponsors

Sections

Walmart, facing higher labor costs due to raise in starting wage, is cutting workers' hours at some stores. More

A conservative think tank is sponsoring a Times Square billboard as a tribune to its opposition to a new minimum wage rule for fast food workers in New York state. More

Blue Apron, Boxed, and Nature Box are worth an estimated $2.5 billion. Their co-founders all went to the same high school. More

How do you run a successful crowdfunding campaign? Indiegogo's CEO Slava Rubin offers his top tips and mistakes to avoid. More

Looking for something good on Netflix? These entertaining films will help you learn more about finance and investing. More