Johnson & Johnson to cut more than 7,000 jobs worldwide
Washington: Johnson & Johnson, a leading US health care products company, said on Tuesday that it will slash between six and seven percent of its global workforce, more than 7,000 jobs, to cut costs.
The global restructuring is expected to generate up to 1.7 billion dollars in annual savings when it is fully implemented in 2011, the company said in a statement.
In 2010, the cost savings would be roughly USD 800 to 900 million.
Johnson & Johnson said it expects to take a pre-tax restructuring charge of USD 1.1-1.3 billion in the current fourth quarter.
J&J, which makes drugs, consumer products and medical devices, has about 117,000 employees worldwide, which would bring the number of jobs to be eliminated to a range of 7,000 and 8,200.
The global restructuring moves are "designed to strengthen the company's position as the world's leading global health care company," the New Brunswick, New Jersey-based firm said.
"The associated savings will provide additional resources to invest in new growth platforms."
The maker of a wide range of products, including Neutrogena skin care products, Band-Aid wound strips and migraine prescription drug Topamax, repeated its 2009 full-year earnings guidance of USD 4.54 to 4.59 per share.
"Johnson & Johnson has long adhered to a broad-based operating model and set of sound management principles that have driven our success," said William Weldon, J&J chairman and chief executive.
"Today, we are announcing a series of actions and plans designed to ensure that our company remains well-positioned and appropriately structured for sustainable, long-term growth in the health care industry."
The company noted the job cuts would be subject to any consultation procedures on the plans in countries where required.