Johnson & Johnson plans to eliminate approximately 3,000 jobs in the next two years as part of an effort to restructure its medical devices business. This amounts to more than 2% of its global workforce and 4% – 6% percent of its medical device employees.
 
“These actions recognize the changing needs of the global medical device market,” said Gary Pruden, chairman of Johnson & Johnson’s medical device unit, in a statement.
 
The restructuring focuses on the company’s orthopedics, surgery and cardiovascular businesses and does not impact consumer medical devices, pharmaceuticals or consumer businesses.
 
The company aims to save $800 million to $1 billion annually, which would mostly be realized by the end of 2018. The company said it is considering “strategic options” for underperforming business units.
 
J&J will book a fourth-quarter charge of about $600 million in connection with the restructuring.