Melvin Baker - AHN Reporter
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.
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