Johnson & Johnson has announced a revamp of its medical devices division that could see a job cull of around 3,000 positions, in a bid to generate cost-savings of up to $1 billion as the sector’s growth continues to slow.

The healthcare giant said the move to streamline its operations would result in a 4 percent to 6 percent reduction of the unit’s global workforce, securing savings of $800 to $1 billion that will give “added flexibility and resources to fund investment in new growth opportunities and innovative solutions for customers and patients”.

“The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation,” said Gary Pruden, worldwide chairman, Johnson & Johnson Medical Devices. “These actions recognise the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business.”

J&J said it expects to record pre-tax restructuring charges of around $2.0 billion to $2.4 billion as a result of the move, of which $600 million will be recorded in the fourth quarter of 2015. Full year 2015 earnings guidance - for sales of$70-$71.0 billion and adjusted earnings of $6.15 to $6.20 per share - remains unchanged.

The Consumer Medical Devices businesses, Vision Care and Diabetes Care will not impacted by the restructure, the firm noted.