J&J; to cut 4,800 jobs to offset declining sales

Johnson & Johnson said Tuesday that it would cut as many as 4,800 jobs in hopes the savings would offset falling sales of its stents, its anemia drug Procrit and two blockbuster drugs that would soon face generic competition.

The company said it expected the plan to generate pretax savings of $1.3 billion to $1.6 billion in 2008, or about 3% of its current cost base.

J&J; -- which has 120,500 employees worldwide and makes a vast array of prescription drugs, medical devices and consumer products -- said it would cut 3% to 4% of its workforce, or 3,600 to 4,800 jobs. Many of the cuts will be accomplished through attrition and hiring freezes.

“I think they will be able to incrementally increase profit [through 2010] thanks to the cost cuts,” Morningstar analyst Heather Brilliant said. Strong demand for medical devices and consumer products should also help offset weakening drug sales, she said.

Shares of New Brunswick, N.J.-based J&J; rose 43 cents to $60.50.