JNJ Johnson and Johnson

By Chelsey Dulaney 

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 blood glucose monitoring systems.

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 1.1% to $98.11 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."

The company is aiming to cut $800 million to $1 billion in pretax annualized costs, with most realized by the end of 2018. J&J said the restructuring would give it more flexibility to fund new growth.

As part of the restructuring, J&J said it would book $2 billion to $2.4 billion in charges. It will take a restructuring charge of $600 million in the fourth quarter of 2015.

Excluding those charges and other special items, J&J backed its 2015 forecasts. The company said it also doesn't expect the restructuring to affect its plans to buy back $10 billion in stock or any future acquisitions.

In addition to its medical device business, J&J also has been hurt by currency headwinds, patent expirations and increased competition for many of its pharma products, such as its hepatitis C treatment Olysio.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

(END) Dow Jones Newswires

January 19, 2016 08:14 ET (13:14 GMT)

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