Johnson & Johnson (JNJ) has announced plans to cut 3,000 jobs.
The Johnson & Johnson layoffs will affect employees that are part of its medical devices division. Roughly 4% to 6% of employees in that division will be cut. The company notes that this is part of a restructure plan to help it save money, reports USA Today.
Johnson & Johnson said the cuts would result in pre-tax charges of $2 billion to $2.4 billion, but that it would save it anywhere from $800 million to $1 billion annually by 2019. Revenue from the company’s medical device division has fallen recently as the U.S. dollar grows stronger, USA Today notes.
Venkat Rajan, a medical device analysts with Frost & Sullivan, said that the market for medical devices is growing by 4% a year, which is down when compared to the double digit growth it experienced in the 2000s. This is likely part of the reason that Johnson & Johnson is cutting its medical devices workforce, The Wall Street Journal notes.
JNJ shares were down 1% as of Wednesday morning.
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