Novartis plans to cut 22,00 jobs worldwide

Mumbai: Swiss drug giant Novartis AG will cut 2,500 jobs or 2.5 per cent of its global workforce of 100,000, aiming at annual savings of $1.6 billion in 2010.

Novartis, the latest global drug firm to undertake major restructuring to beat price pressures and high research and development costs, said it would take a $450 million charge in the fourth quarter.

Novartis expects these measures would help it meet tighter regulations and face more generic competition.

Declining sales of flagship drugs, fierce generic competition and a general lack of significant new drugs have led to a wave of restructuring in the industry, including the world's two biggest drugmakers, Pfizer Inc and GlaxoSmithKline Plc.

Novartis suffered a series of setbacks this year. While safety concerns delayed its key diabetes drug Galvus, Novartis was force to lower its full-year outlook after withdrawing Zelnorm from US market in March.

Novartis had already cut 1,260 jobs in the US to help generate annual savings of $230 million.