Neutrogena, the renowned skincare company that originated in Los Angeles in 1930, is set to close its West Coast headquarters and relocate its operations to New Jersey. The decision, which was announced in a notice filed with the California Employment Development Department two months ago, will result in the layoff of 84 employees, effective from Friday.
This significant move follows Johnson & Johnson’s spin-off of a portion last August, creating an independent publicly traded company known as Kenvue Inc. While Kenvue’s headquarters are currently situated in Skillman, New Jersey, the company has decided to consolidate all its operations into a new location in Summit, New Jersey. Kenvue’s media department issued a statement explaining that the company is evolving its operations to expand its consumer reach, enhance collaboration, create more extensive career opportunities for its employees, and drive sustainable growth. They emphasized their commitment to supporting the affected employees during this transition, providing necessary resources and assistance.
It is reported that Kenvue’s annual revenues achieved $15.44 billion, with net income reaching $1.664 billion last year. Its portfolio encompasses a wide range of beauty and healthcare products, including Aveeno, Band-Aid, Benadryl, Zyrtec, Listerine, Mylanta, Neutrogena, and Tylenol. Neutrogena and other skincare and beauty items contribute approximately 20 percent of the company’s total revenues, according to financial filings with the Securities & Exchange Commission.
The decision to relocate comes in the wake of Kenvue’s reported 8 percent decline in organic sales for its skin health and beauty segment during the most recent fourth quarter of 2023. As the company strives to adapt and strengthen its position in the highly competitive market, it aims to optimize its operations by consolidating various sites into a single location, Summit, New Jersey, which will serve as its future world headquarters.
