Novartis HQ

Novartis to cut 2,000 jobs

pharmafile | October 25, 2011 | News story | Manufacturing and Production, Research and Development  

Novartis will cut around 2,000 jobs is the US and Switzerland as part of additional cost saving measures.

The positions will go over the next three to five years and will see the closure of three manufacturing plants in Italy and Switzerland, which focus on OTC and chemicals. 

The Swiss firm also said it would restructure the development organisation in across several countries, which will mean relocating some research activities from Switzerland to the US. 

Novartis said that it would take a fourth-quarter charge of about $300 million related to the restructuring, but expects to make $200 million in annual savings from the cuts.

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But Novartis said this would be partially offset by 700 new positions being created in low cost countries such as China and India.

Chief executive Joe Jimenez said: “These actions [the job cuts] are necessary to ensure that we adapt our organisation to continue delivering on our mission of bringing innovative new drugs to patients.”

The decision was prompted by the upcoming loss of patent protection for its biggest selling drug Diovan, which made the company $6 billion last year.

The firm enjoys a strong pipeline and has been buoyed by the recent launch of the MS pill Gilenya. 

But this drug is expected to be making just $3 billion in peak sales, falling short of the blockbuster revenue brought in by Diovan. 

Ben Adams

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