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Novartis slashes jobs to cut costs

Novartis slashes jobs to cut costs
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Novartis is cutting 2,000 jobs in Switzerland and the United States to keep costs under control. That is in response to growing price pressures and the strong Swiss franc.

The Swiss drugmaker has already cut thousands of jobs and shut several plant, notably in Britain. It has also shifted its focus to specialty medicines over the past year in a bid to boost profitability and protect its bottom line.

The latest measures, which affect 1.7 percent of Novartis’ global workforce and involve moving more commoditised business activities to less expensive countries, should allow the group to rake in annual savings the equivalent of more than 144 million euros.

Over the next three to five years, Novartis will close two sites in Switzerland and one in Italy. It will axe 1,100 jobs in Switzerland, Novartis said, sparking outcry from employee representatives there.

“Well hidden between the gleaming figures and record results, pharma giant Novartis today announced the biggest mass layoffs Switzerland has seen for several years,” Swiss trade union Unia said in a statement, adding it will fight against the cuts.

Some research activity will be moved from Switzerland to the United States, and Novartis will create 700 new jobs in low cost countries, the group said.

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