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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,399.67 19.26 0.12%
Nasdaq 4,316.07 57.64 1.35%
S&P 500 1,904.01 17.25 0.91%
Treasuries 2.18 -0.02 -0.82%
Data as of 3:11am ET
Company Price Change % Change
Apple Inc 99.76 2.09 2.14%
Bank of America Corp... 16.26 0.05 0.31%
Pfizer Inc 27.93 0.10 0.36%
Facebook Inc 76.95 1.00 1.32%
Microsoft Corp 44.08 0.45 1.03%
Data as of Oct 20

Sections

Better-than-expected iPhone sales and record Mac sales lifted Apple in its fiscal fourth quarter. More

China's economy has clocked its worst quarter in more than five years, raising concerns over Beijing's ability to meet its own annual growth target. More

In three years, all Chicago high school students will have to take a coding course in order to graduate. More

Host a furniture market. Here's how small town High Point, N.C. rakes in this much money -- twice a year. More

Detroit has 80,000 dilapidated properties and 100,000 empty lots. It's trying to get more people like Antjuan Wyatt to buy them. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.