Johnson & Johnson on Tuesday said it would cut about 3,000 jobs in its medical-devices division as part of an effort to remove $1 billion in annual costs in the business that makes sterilization equipment and surgical tools.
The eliminated positions represent 2.5% of J&J’s global workforce and up to 6% of its medical device segment.
Shares of J&J added 1% to $97.98 in premarket trading.
J&J’s medical device sales have been struggling lately, with sales slipping 2.9% in the first nine months of the year and 3.4% in the U.S. The company said the restructuring reflects “the changing needs of the global medical device market.”
The moves relate to J&J’s orthopedics, surgery and cardiovascular businesses. The company said its consumer medical devices businesses, vision care and diabetes care businesses won’t be affected by the restructuring.
J&J said that while it wasn’t providing specific information on potential business exits, it expected “any potential sales impact to be minimal.”