Johnson & Johnson set to cut jobs

Johnson & Johnson employs 118,700 people worldwide

Healthcare firm Johnson & Johnson has said it will cut up to 7% of its global workforce in plans aimed at saving up to $900m (£551m) next year.

The company, which employs 118,700 people, will also trim layers of management as part of the plans.

Johnson & Johnson saw its revenue fall by 5% in the third quarter, blaming competition from cheaper patent-free products.

The company hopes the plans will eventually save it $1.7bn by 2011.

Johnson & Johnson hopes the restructuring will keep it well positioned for long-term growth, but said it recognised that the job cuts would not be welcomed by employees.

"These types of changes are difficult under any circumstances, and will have a very personal impact on people who have been dedicated to the mission of Johnson & Johnson, " said chairman and chief executive William C. Weldon in a statement.

Johnson & Johnson's last major restructuring was in July 2007, when it cut about 3% of its workforce.