(NYSE: JNJ)
+
is enacting an organizational restructuring, changing the way its business units operate.
In an internal message sent to J&J employees obtained by MassDevice, company leadership said that J&J MedTech will move away from a regional model to a business unit-led operating model globally, beginning on Jan. 1, 2026.
The memo said that the decision builds on a shift toward a more decentralized, end-to-end operating model that it began in early 2024. Then, it moved around 35,000 MedTech employees into the business units (BUs).
“A more decentralized, BU-led operating model will cut down on bureaucracy, increase accountability and ownership, and help us move faster,” the memo said. “This will ultimately make us more competitive so we can do more for our customers and patients.”
The shift also comes as J&J looks to separate its DePuy Synthes Orthopaedics business, announcing the decision last month. The company said the separation aims to enhance the strategic and operational focus of each company while driving stakeholder value. (Tim Schmid, J&J MedTech’s EVP and worldwide chair, spoke about this decision at DeviceTalks West last month.) The company’s president of Orthopaedics also announced her departure last month.
A Johnson & Johnson spokesperson shared the following statement with MassDevice via email:
“Johnson & Johnson MedTech is dedicated to improving the lives of millions of people around the world. To strengthen that commitment, we have updated our organizational structure to create a simpler, faster, and more competitive organization that can better serve patients and customers.
“We are moving businesses from a regional model to a business-unit led structure. This will increase specialty focus, streamline decision-making, and deliver better clinical and commercial outcomes for the people and healthcare providers we serve.”
More on the changes at Johnson & Johnson MedTech
The J&J MedTech memo said the initial transition to BUs created “clearer accountability, simplified ways of working and sped up decision-making.” It said this enabled teams to “more clearly see how their work contributes to business success.” Now, the company says this restructuring represents the next step.
In the memo, the company said the planned separation of Orthopaedics (which represents nearly 30% of its global MedTech business) led it to rethink how it works across its Cardiovascular, Surgery and Vision units. This comes as the medtech industry continues to evolve, the company says.
“To compete and win, we must have deeper specialization and faster, more connected ways of working within our BUs — from product development all the way through commercial execution around the world,” the memo said.
Beginning Jan. 1, 2026, each unit will have full accountability for its business performance, from strategy to execution, globally. The memo said all commercial leadership will report directly into the BUs.
Surgery and Electrophysiology will establish distinct regional leadership structures, the memo said. Surgery reports to Hani Abouhalka, company group chair for Surgery. EP reports to Michael Bodner, company group chair for EP and Neurovascular. Regional Supply Chain teams now transition to report to MedTech Supply Chain under Luis Roman, VP of MedTech Supply Chain. The company plans for Enterprise Functions to realign their current structures over time to best support the new operating model.
Johnson & Johnson MedTech said the shift does not include changes for customer-facing roles, U.S. commercial structure (already organized by BU) or the company’s Vision, Heart Recovery or Circulatory Restoration units, which already operate in this model. The company plans for China to continue operating as it does today.
Updates to company leadership
With this decision, the company intends to move away from cross-MedTech leadership teams in regions and markets. Changes include:
Gustavo Gala, VP of MedTech LATAM, moves to oversee the structured implementation of the operating model changes.
Vishnu Kalra, company group chair of MedTech APAC, assumes the new role of international president, DePuy Synthes.
Kalra reports to Namal Nawana. Orthopaedics market and cluster leaders across all OUS regions will shift to report to Kalra in 2026.
Gavin Wood, company group chair of MedTech EMEA, will support the transition through mid-2026.