Here are Novartis cuts and plans
Novartis has announced it will lay off 8,000 employees, but are things really that bad? All the details
Cuts in Novartis. The Swiss pharmaceutical giant will lay off 8,000 employees worldwide to make its structure "lighter and simpler". The move will allow him to save $ 1 billion.
THE ANNOUNCEMENT
According to reports from the Swiss newspaper TagesAnzeiger , Novartis CEO Vas Narasimhan explained in an email sent to employees that the new structure will be "lighter and simpler" but that "unfortunately it will lead to job cuts" .
Some of these, the newspaper specifies, will be transferred to Novartis assistance centers abroad, for example in Prague or Hyderabad in India. “However, – the article reads – it is not just about outsourcing expensive Swiss jobs to cheaper countries. Many jobs will be eliminated entirely ”.
To lighten the 108,000-employee structure around the world, Novartis will cut 8,000 jobs, about 7.4 percent of its workforce.
THE TARGET
The "simplification" announced in April provides, in particular, for oncology and its other pharmaceutical activities to be combined within the same division.
The plan aims to save at least $ 1 billion by 2024 and the new organization, says Novartis, "will accelerate growth, strengthen the pipeline and increase productivity."
THE INDISCRIPTIONS AND FEARS OF SWITZERLAND
While not much guidance has been given on the cuts, several outlets from the Swiss press group Tamedia have disclosed details of the figures.
In Switzerland, in fact, there is particular concern because the group employs 11,600 people and, according to rumors, up to 1,400 are involved in the reorganization of activities, or – explains TagesAnzeiger – “over 10% of employees will lose their jobs work in the next three years ".
The article also reports that negotiations for a social plan are underway and "it is likely that it will be generous" given that "Novartis had already shown itself generous with its latest mass layoff, which has just ended".
The partners in this case are not the trade unions, but the internal staff committees.
THE CASES OF NOVARTIS
CEO Narasimhan, writes Reuters , “is looking to boost its efficiency credentials as the Swiss pharmaceutical company is receiving huge cash earnings, including $ 20.7 billion last year from the sale of its 33% stake. in Roche to its Swiss rival, and from a possible sale of its Sandoz unit, a manufacturer of low-cost generic drugs ”.
In this regard, Novartis said it plans to complete the review of Sandoz by the end of the year.
Income that, especially as regards the sale of Roche shares, according to what TagesAnzeiger writes, would allow Novartis to "swim in gold" and "cost reduction exercises would not actually be necessary".
However, the Swiss daily says that "Novartis is under pressure to convince the stock market with new, high-turnover drugs."
Currently, according to Drug dicovery trends , Novartis has relatively few megablockbuster drugs. In 2021, the plaque psoriasis therapy Cosentyx (secukinumab) earned $ 4.7 billion, while the multiple sclerosis drug Gilenya (fingolimod) generated $ 3.5 billion.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-tagli-e-piani-di-novartis/ on Thu, 30 Jun 2022 13:29:17 +0000.