While Johnson & Johnson is making a $55 billion investment in U.S. manufacturing, research and development, and technology through early 2029, the company is also paring down its pharmaceutical supply chain as part of a restructuring program to gain efficiencies.

J&J announced Wednesday in its second-quarter 2026 financial results that it has started the supply chain restructuring program primarily in the company’s Innovative Medicine division to “exit certain manufacturing locations as part of its optimization efforts to streamline operations.”

The program, which is expected to be substantially completed by the end of fiscal year 2029, will cost J&J between $650 million and $750 million and include “site and supplier exit costs, decommissioning and asset impairment costs.” The company incurred $200 million in restructuring expenses in Q2 2026 which it said were “primarily related to asset impairments.”

Despite the ongoing supply chain restructuring program, J&J contends it has more manufacturing facilities in the U.S. than in any other country and has cited domestic production and innovation as central to its long-term business strategy.

Last year, the company broke ground on a new 500,000-square-foot, $2 billion biologics manufacturing facility in Wilson, North Carolina, marking the first phase of its $55 billion U.S. investment plan over the next four years — a 25% increase compared to the previous four-year period. J&J also plans to build a second “multibillion-dollar” facility in Wilson, its third investment in North Carolina over the past year.

Besides its own in-house capabilities, J&J made a $2 billion commitment over 10 years to establish a dedicated facility at contract manufacturer Fujifilm Biotechnologies’ new biomanufacturing site in Holly Springs, North Carolina. The 160,000-square-foot production plant in Holly Springs supports J&J’s plans to manufacture “the vast majority” of medicines domestically.

2026 investments ramp up

This year, J&J continues to invest in domestic production as it advances its portfolio and pipeline of treatments for cancer, immune-mediated, and neurological diseases.

“As a part of our $55 billion U.S. commitment, we recently announced an investment of more than $1 billion to scale our U.S. Vision manufacturing, packaging, and distribution capabilities as we expand capacity to meet growing demand for these products,” J&J CEO Joaquin Duato said in Wednesday’s earnings call.

The $1 billion capital expenditure includes construction of a new distribution facility in Jacksonville, Florida, including advanced manufacturing and packaging technologies meant to expand capacity and meet the growing demand for J&J’s contact lenses.

In February 2026, J&J announced a more than $1 billion investment to build a next-generation cell therapy manufacturing facility in Montgomery County, Pennsylvania. The new facility will add to J&J’s existing footprint in Pennsylvania, where it operates 10 facilities across manufacturing, research, distribution and office functions, totaling more than two million square feet.

In January 2026, J&J struck an agreement with the Trump administration to provide discounted U.S. medicine rates in exchange for a grace period from the Department of Commerce’s Section 232 investigation on pharmaceutical tariffs. However, Duato said last year that J&J’s “already elevated” U.S. investment levels are the result of the passage of the 2017 Tax Cuts & Jobs Act, not President Trump’s threat of tariffs on pharmaceuticals.