Johnson & Johnson's Cuts Signal Continued Pressure On Medical Devices

WSJ -- Johnson & Johnson's (JNJ) latest cost-cutting moves signal more time in the recovery ward for a medical-devices sector burdened by shrunken hospital budgets, a slowdown in elective procedure rates and pressure on device prices. The health-care conglomerate said Tuesday that it plans to lay off as many as 8,200 workers worldwide as part of a plan to save up to $1.7 billion in 2011. While J&J said cuts are spread across the company, they were prompted in part by expectations for more economic pressure that has hurt device-industry sales all year.