J&J to cut up to 7 percent of work force, sets charge

The New Brunswick, N.J., company said the job cuts will affect 6 to 7 percent of its global work force of roughly 118,700 workers, prompting a restructuring charge of up to US$1.3 billion pretax in the fourth quarter. Still, the company confirmed adjusted profit guidance between US$4.54 and US$4.59 per share for 2009.

Johnson & Johnson says it will also simplify its business structure in order to achieve savings and projects that it will save between US$1.4 billion and US$1.7 billion annually after the restructuring is complete in 2011.

The company, the world's most diversified health-products maker, saw its revenue fall 5 percent in the third quarter as intensifying generic competition slashed sales of about a half-dozen of its prescription drugs.

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