Swiss drug maker Novartis is to cut 2,500 jobs worldwide by 2010. That is about 2.5% of its work force. It is part of a restructuring intended to reduce costs annually by one billion euros and boost growth.
This comes just months after the company said it will trim its sales staff in the US by more than 1,200.
Novartis is facing price pressures on drugs, higher research costs, tighter regulations and more generic competition.
Its profits fell from 1.6 billion euros in the first three months of the year to 1.4 billion in the second quarter and 1.1 billion between July and September.
It is anticipated the restructuring will cost the drug maker just over 300 million euros, with that amount appearing on the balance sheet for the fourth quarter. The plan is that many of the job cuts will come from not replacing staff who leave.
Novartis has suffered a series of setbacks this year. Its key diabetes drug Galvus has been delayed because of safety concerns and the company also cut its full-year outlook after withdrawing bowel drug Zelnorm.