Johnson & Johnson (JNJ) stock could gain out of restructuring plans

Johnson & Johnson (NYSE: JNJ) has announced that it plans to take a Q4 restructuring charge of about $1.2 billion as a part of a cost-cutting programme to reduce its global work force by 6% to 7%.

Johnson & Johnson (JNJ) stock, which has very recently tested the support level of 200 days MA of $59 before reverting in upswing, is likely to get a fillip from this positive news.

Johnson & Johnson's (JNJ) plans are expected to generate annualized, pre-tax cost savings of $1.4 billion to $1.7 billion by 2011, including $800 million to $900 million in 2010.