Healthcare giant Johnson & Johnson today announced it is cutting 3,000 jobs from Medical Devices business.
The job losses will effect approximately four to six per cent of the division's 60,000 employees around the world, over the next two years. The Medical Devices unit covers orthopaedics, surgery and cardiovascular products.
The cuts account for 2.5 per cent of its 127,000-strong global workforce.
The company is hoping the cuts will save $800m to $1bn (£656m-£707m) a year by the end of 2018, including approximately $200m this year.
Johnson & Johnson said expects to report pre-tax restructuring charges of approximately $2bn - $2.4bn in connection with the cuts, which will be treated as special items, of which approximately $600m will be recorded in the final quarter of 2015.
Half of the costs will be cash items, including severance pay, and the remaining 50 per cent will be non-cash items, such as asset write-offs.
Gary Pruden, worldwide chairman of Johnson & Johnson Medical Devices, said the company was investing in "increasing our competitive advantage and driving growth and profitability for our business."
The company’s Consumer Medical Devices businesses, Vision Care and Diabetes Care, are not impacted by these actions.
The company said it remained committed to the $10bn share repurchase programme announced last October.