NEW YORK (CNNMoney.com) -- Johnson & Johnson said Tuesday that it will cut up to 7% of its global workforce as part of an ongoing cost-cutting plan that the company says will save between $1.4 and $1.7 billion by 2011.
The New Brunswick, N.J.-based consumer health product maker has about 117,000 employees spread across more than 250 companies.
"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," William Weldon, J&J's chairman and chief executive, said in a statement.
J&J said it expects to book a restructuring charge of up to $1.3 billion in the fourth quarter as a result of the program. But the company confirmed its earnings outlook for 2009, saying it expects to earn of $4.54 to $4.59 per share, excluding special items such as restructuring charges.
While the bulk of the cost savings is expected in 2011, the company said it could save $800-$900 million next year as a result of the program.
Shares of J&J were up 1.7% to $60.50 in pre-market trading.