J&J To Cut 8,200 Jobs To Save More Than $1 Billion

November 3, 2009 2:53 p.m. EST

New York, NY (AHN) - Health care product company Johnson & Johnson will trim its work force by up to 7 percent in an effort to cut costs by nearly $2 billion.

The company announced Tuesday that it will fire about 8,200 of its 117,000 workers to thin out layers of management and simplify business structures. Johnson & Johnson expects to save between $1.4 billion and $1.7 billion after the plan is fully implemented in 2011.

J&J will take a pre-structuring charge of $1.1 billion to $1.3 billion for the fourth quarter. It expects 2009 earnings between $4.54 and $4.59 a share.

Third quarter earnings were below expectations. In the past 12 months, the company has lost 2.7 percent of its value.

Shares of Johnson & Johnson (NYSE: JNJ) were down 0.74 percent at 2:24 p.m.