News: Novartis presses forward with restructuring, cuts 680 development jobs

Talent Management

Novartis presses forward with restructuring, cuts 680 development jobs

The development arm of Novartis, currently staffed by approximately 12,500 individuals, encompasses vital functions including drug regulations, analytics, and quality assurance.
Novartis presses forward with restructuring, cuts 680 development jobs

Novartis, the Swiss pharmaceutical giant, has announced plans to reduce its workforce by cutting up to 680 jobs in its development organisation. This move, aimed at streamlining operations, will affect approximately 440 positions in Switzerland and up to 240 roles in the United States over the next two to three years. 

The decision comes as part of Novartis's broader restructuring program, which could potentially see up to 8,000 employees, out of its 78,000 global workforce, being laid off, reported Reuters. 

This announcement follows a trend in the pharmaceutical industry, with rival companies like Roche also implementing job cuts in product development. Roche had previously disclosed plans to eliminate 345 positions in a similar capacity earlier in the year. The measures taken by both companies reflect ongoing efforts to optimise efficiency and adapt to evolving market dynamics.

Novartis's development organisation, which currently employs around 12,500 individuals, encompasses critical functions such as drug regulations, analytics, and quality assurance. 

These professionals play pivotal roles in bringing new drugs to market by designing production processes post-research. Presently, approximately 3,000 of these positions are based in Switzerland, and 2,000 are in the United States, indicating that around 14% of roles in these countries will be affected by the job cuts.

Despite the reduction in workforce, Novartis remains committed to its development efforts in both Switzerland and the United States. The company intends to reshape its capabilities to access local talent, particularly data scientists and regulatory specialists, in regions like Britain. 

This strategic realignment underscores Novartis's ongoing commitment to innovation and its desire to leverage diverse skill sets to drive future growth.

A spokesperson for Novartis reiterated the company's dedication to development work in Switzerland, highlighting it as an innovation hub for complex development projects. 

"We remain committed to development in Switzerland as our innovation hub for complex development, and providing strategic leadership as the global headquarters for development," a spokesperson said.

Additionally, the United States continues to play a vital role as a key development hub, with strong representation in global program teams responsible for advancing the company's medicines pipeline. Despite the workforce reduction, Novartis remains focused on its mission to deliver innovative healthcare solutions while adapting to the evolving needs of the industry.

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Topics: Talent Management, #Layoffs, #HRTech, #HRCommunity

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