Novartis to cut up to 8,000 jobs globally as it restructures business
01 Jul 2022
Swiss pharma giant Novartis said on Tuesday that the company would have to cut 8,000 jobs, or about 7.4 per cent of its global workforce, as part of a restructuring programme the announced in April. The restructuring targets savings of at least $1 billion by 2024, the company stated.
Novartis said the new organisational structure involved integrating its pharmaceuticals and oncology business units and would lead to eliminating roles across the organisation.
The restricting programme, previously announced by chief executive Vas Narasimhan, could lead to reduction of up to 1,400 in Switzerland also.
"This restructuring could potentially impact 1,400 positions based in Switzerland, out of around 8,000 positions impacted globally," the company said, adding it had currently 108,000 employees globally, including 11,600 in Switzerland.
The cost cuts would involve removing overlapping structures as it will no longer run its oncology and non-oncology pharmaceuticals businesses separately.
Novartis said the new structure would be implemented over the next months.
Novartis is already floating on cash with windfalls, including $20.7 billion last year from the sale of its 33 per cent stake in Roche back to the Swiss rival, and from a possible sale of its Sandoz unit, a maker of cheap generic drugs.
Novartis, which plans to buy back up to $15 billion worth of shares, said it would still have enough spending power to buy companies and technologies to boost its growth prospects. The company said it would complete its review of Sandoz by year-end.
Novartis, meanwhile, opened its new manufacturing plant for generic oral cancer medicines at Kalwe in Mumbai, as it seeks to cater to export markets.
Spread across 32,000 sqm, with state-of-the-art production technology, the plant currently has a workforce of only 70 people.
Novartis said the plant, which marks a new chapter for its Sandoz business, will further strengthen the company’s operations in India and play a key role in driving global growth for its generics business.
“Today marks an important milestone for us at Novartis, and particularly for our Sandoz division, a global leader in generic pharmaceuticals and biosimilars. The inauguration of the new production and launch site for Oncology oral solids at Kalwe in India is a step forward in our constant endeavour to pioneer access for patients by developing and commercializing novel, affordable approaches that address unmet medical needs," said Sanjay Murdeshwar, country president, Novartis India.
"Moreover, the launch of this facility will support the government’s ‘Make in India’ vision to find solutions for the evolving needs of patients around the world,” Murdeshwar added.
The Sandoz division bets on off-patent drugs in areas including oncology, immunology and anti-infectives, to cater to the generic medicine market.