The healthcare giant is targeting its pharmaceuticals business, which “faces significant patent expirations over the next few years,” and its Cordis stent business, which has experienced several setbacks, as a way to reduce costs and save, on a pre-tax basis, between $1.3 billion and $1.6 billion next year. Unspecified operations will be consolidated.

J&J employs 120,500 people globally.

“Throughout our history, we have always taken a thoughtful, disciplined approach to address the challenges we face,” says Bill Weldon, J&J’s chairman and ceo, in a statement this morning. “These actions we are taking to improve our cost structure will enable us to continue investing for future growth and profitability…These are difficult issues, but ones that must be addressed to ensure the long-term strength of our business.”

Job cuts are only way J&J plans to save money. The company plans to “accelerate steps” to standardize and streamline human resources, finance and information technology, and more effectively use areas such as procurement across the board. A teleconference will be held at 9 a.m. EST for Wall Street analysts.