Johnson & Johnson will slash around 7% of its workforce as part of its restructuring plans.

Leading healthcare company Johnson & Johnson has unveiled a number of cost-saving initiatives to help it save around $1.4 – $1.7 billion (£1 – £1.3bn) by 2011.

The company said it was implementing a global restructuring programme which it hopes will “strengthen its position as the world’s leading global health care company.”

Approximately 6-7% of the company’s workforce will be cut across its global operations, affecting employees at all levels. Across its 250 companies, 117,000 people are employed.

According to a statement announcing the changes, the cost savings will be achieved by “reducing layers of management, increasing individual spans of control, and simplifying business structures and processes.”

Johnson & Johnson said that the savings will allow the company to grow and help it launch new products, whilst providing it with the flexibility to adjust to the ever-evolving global environment.

Chairman and CEO, William C. Weldon, said: “Johnson & Johnson has long adhered to a broad-based operating model and set of sound management principles that have driven our success.

“Today we are announcing a series of actions and plans designed to ensure that our company remains well-positioned and appropriately structured for sustainable, long-term growth in the healthcare industry.”

Weldon said that making these types of changes is never an easy decision and the company is committed to treating those affected employees fairly throughout the process.

Johnson & Johnson is one of the world’s leading manufacturers of healthcare products.