NEW YORK (TheStreet) -- Shares of Johnson & Johnson (JNJ) - Get Report are advancing by 1.01% to $97 in pre-market trading on Tuesday, as the company will cut about 3,000 jobs in its medical device unit.
The jobs cuts are part of an effort to eliminate $1 billion in yearly costs in the division that makes sterilization equipment and blood glucose monitoring systems, the Wall Street Journal reports.
The company's medical device sales have dropped by 2.9% in the first nine months of the year and 3.4% in the U.S.
The restructuring shows "the changing needs of the global medical device market," Johnson & Johnson said, the Journal added.
The job cuts represent 2.5% of Johnson & Johnson's workforce around the world and up to 6% of its medical device unit, the Journal noted.
The New Brunswick, NJ-based holding company is engaged in the research and development, manufacture and sale of a range of products in the healthcare field.
Separately, TheStreet Ratings Team has a buy rating with a score of A- on Johnson & Johnson. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that it rates.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: JNJ