In addition, the Food and Drug Administration for a second time rejected J&J's experimental antibiotic ceftobiprole, for complicated skin infections like MRSA, in December, saying it will require additional studies.
The Tylenol recall, first announced in November, has twice been expanded and now includes products in the Motrin, Benadryl, Rolaids, St. Joseph's aspirin and Simply Sleep lines. The items have a mildew-like odor associated in some cases with nausea, stomach pain and vomiting.
The restructuring, J&J's biggest ever, aims to pare expenses by roughly $1.5 billion a year after 2011 and to address declines in sales of a couple of blockbuster prescription drugs with generic competition and lower consumer product sales because of the recession. Total revenue fell 5 percent in the third quarter, marking an unprecedented four straight quarters with revenue down significantly, after years of steady sales and profit increases.
The company said it will pare its work force by up to 8,000 jobs, or nearly 7 percent of the worldwide staff, over the next few years. Last August, J&J said it was consolidating management, starting by eliminating executive posts at its comprehensive care division. A restructuring begun in July 2007 eliminated roughly 4 percent of jobs.
J&J's profit jumped almost 10 percent in 2008, but grew only 1.8 percent last year as the recession crimped sales of many products and its blockbuster schizophrenia drug Risperdal was derailed by cheaper generics.
Although epilepsy treatment Topamax faces generic competition in March, the company expects earnings to rise as much as 7 percent this year — helped by newer products such as its recently approved Stelara psoriasis drug.
J&J shares fell in early trading. Get Real-Time Quotes for Johnson & Johnson
—Wire services contributed to this report.
(An earlier version of this story incorrectly said Johnson & Johnson fell short of sales expectations.)