Johnson & Johnson will eliminate 8,000 jobs globally

The Associated Press reports that Johnson & Johnson will cut about 8,000 jobs affecting 6 to 7 percent of its global work force. Johnson & Johnson employs roughly 118,700 workers. They will also streamline its operations in an effort to cut costs as it braces for changes in the health care industry. The restructuring is one of Johnson & Johnson''s biggest ever and will prompt a restructuring charge of up to $1.3 billion pretax in the fourth quarter. Johnson & Johnson plans to simplify its business structure and projects that it will save between $800 million and $900 million next year and $1.4 billion and $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, including the schizophrenia drug Risperdal and the epilepsy treatment Topamax. Chairman and CEO William C. Weldon said the moves are meant to position the company for long-term growth amid an evolving, and sometimes turbulent, market.