SWITZERLAND – Novartis has disclosed that it expects to cut as many as 8000 jobs, or roughly 7% of its global workforce, including some 1400 positions in its home base of Switzerland, as it looks to knock off at least US$1 billion in expenses by 2024.
Novartis, which currently employs some 108,000 people around the world, including 11,600 in Switzerland confirmed that it would shed thousands of jobs as part of a restructuring plan announced in April.
The company had confirmed in April that there would be layoffs as part of a broader effort to merge its pharmaceuticals and oncology businesses into a single innovative medicines unit with separate US and international commercial organizations, and to boost sales by at least 4% through 2026.
In an email sent to employees, Novartis chief Vas Narasimhan explained the company’s new structure, which he promised would be “both leaner and simpler” and as a result, the company intends to eliminate roles across the organization.
According to a report in the Swiss daily Tages-Anzeiger, some of the jobs in Novartis service centres will be outsourced to areas such as Prague or Hyderabad, although other positions would be eliminated entirely to avoid duplicate roles once the general medicine and oncology drug units are merged.
The newspaper said Novartis will continue to leave the more than 5000 research and development positions at its Basel campus.
Novartis, which currently employs some 108,000 people around the world, including 11,600 in Switzerland confirmed that it would shed thousands of jobs as part of a restructuring plan announced in April.
However, the pharmaceutical sector in Switzerland will see around 250 jobs lost in marketing and product management.
Another 550 roles will be cut in the operational segment, which will also be restructured, the Swiss report said.
Novartis indicated that the new structure would be implemented over the next months. The company also noted that it completed the appointment of most leadership at the global level and would provide further updates in the coming weeks.
Marie-France Tschudin and Victor Bulto have already been appointed to head the international and US branches of the new innovative medicines segment.
Shreeram Aradhye was hired as chief medical officer and president of global drug development, replacing John Tsai, who left the company on May 15 to pursue other opportunities.
CEO Vas Narasimhan is seeking to boost his efficiency credentials as the Swiss drug major is receiving huge cash windfalls, including US$20.7 billion last year from the sale of its 33% stake in Roche ROG.S back to the Swiss rival, and from a possible sale of its Sandoz unit, a maker of cheap generic drugs.
Novartis has said it would complete its review of Sandoz by year-end. Despite plans to buy back up to US$15 billion worth of shares, Novartis has said it would retain enough spending power to buy companies and technologies to boost its growth prospects.
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