(NEW BRUNSWICK, N.J.) — Johnson & Johnson has announced the removal of 6 percent of its medical devices division, cutting 3,000 jobs.
In a statement on Tuesday, the health-care giant said the move was to “better serve the needs of customers and patients in today’s evolving healthcare marketplace.”
The positions in medical devices made up 2.5 percent of Johnson & Johnson’s 127,000 employees around the world.
“The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation,” said Gary Pruden, Johnson & Johnson medical devices worldwide chairman, in a statement Tuesday. “These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business.”
According to the statement, the removal will result in a pre-tax cost savings of $800 million to $1 billion.
“The savings will provide the company with added flexibility and resources to fund investment in new growth opportunities and innovative solutions for customers and patients,” the statement said.
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