Johnson & Johnson (JNJ) unveiled plans to generate up to $1.7 billion in pretax cost savings through job cuts and other means when planned moves are fully implemented in 2011. Up to 7% of the company's nearly 120,000-person work force will be eliminated through the streamlining. The health-products giant said job cuts will be only one aspect of the move.

A fourth-quarter restructuring charge of up to $1.3 billion will be recorded as the company reiterated its 2009 earnings target excluding items such as that charge.

This year has shaped up to be one of J&J's most difficult, with all three of its main business units showing signs of weakness. Heightened competition from generics has hurt its prescription-drug arm, while unfavorable currency-exchange rates have pulled down sales growth for consumer health care and medical devices.

J&J earlier this year cut about 900 jobs from its U.S. pharmaceutical unit, and in August it consolidated its management structure. When the company released its third-quarter results last month, Chief Financial Officer Dominic Caruso left open the possibility of further cost cutting, saying the company was evaluating its plans for next year.

Shares closed Monday at $59.49 and were inactive premarket. The stock is down 0.6% this year.