A new round of layoffs is coming as a unit of health care giant Johnson & Johnson moves to close its distribution center in Monument as part of a restructuring of its medical technology operations.

DePuy Spine Limited Partnership notified the Colorado Department of Labor and Employment last week that it plans to lay off 67 employees between Dec. 29 and Jan. 11. It’s the third round of job cuts the company has announced since late July. In all, 92 positions will be eliminated, mostly in assembly and packaging, quality control and assurance as well as material handling and distribution, according to notices the company sent to the department. DePuy declined to say whether any further layoffs were coming or if there would be any employees left in the distribution operation after the third round of cuts.

The Monument distribution center is in a 172,000-square-foot manufacturing plant operated by outsourcing giant Jabil in a deal with Johnson & Johnson to manufacture “orthopedic and neurological products for joint reconstruction, trauma, spins, sports medicine and other uses” marketed by DePuy, according to Jabil’s website. The manufacturing operation provides jobs for 1,000 employees and contractors, making it the largest employer in the Tri-Lakes area.

Ryan Carbain, director of media relations for Johnson & Johnson MedTech, said in an email statement: “We are continuously looking for opportunities to evolve and improve the way we operate. As part of that process, we evaluated our supply chain operations and began to migrate product supply from our Monument, Colorado, facility to our Mooresville, Indiana, distribution center in 2020. We remain committed to supporting employees and partners during this time of change. This move will increase capacity for our inventory and enhance supply chain operations in support of our customers and their patients.”

The layoffs come as Johnson & Johnson last month began a two-year restructuring of its orthopedic business after third-quarter medical device sales fell short of Wall Street analyst expectations. The company said in a filing with the U.S. Securities and Exchange Commission that the restructuring would streamline operations by exiting certain markets, product lines and distribution network arrangements and would cost between $700 million and $800 million.

Johnson & Johnson transferred its manufacturing operations in Monument in 2019 to Jabil as part of an effort to cut costs and boost efficiency in its global supply chain, saving the company up to $800 million annually starting in 2022. Johnson & Johson MedTech accepted Jabil’s offer to form a “strategic collaboration” that included transferring part of the Monument plant and its employees to Jabil.

Johnson & Johnson acquired the operation, which started in 1979, when it bought Swiss medical manufacturer Synthes in 2012.

Terri Hayes, CEO and president of the Tri-Lakes Chamber of Commerce, said Johnson & Johnson officials had indicated at the time of the Jabil transaction that Johnson & Johnson would eventually leave Monument as part of a consolidation, but she is happy that Jabil continues to operate the manufacturing plant. Jabil has not filed any layoff notices with the department or announced any layoffs at the plant. The company didn’t respond to an email seeking comment on its plans in Monument.

DePuy Spine Limited Partnership, a unit of health care giant Johnson & Johnson, is shutting down its distribution center in Monument and moving those operations to a facility in Indiana.

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