Novartis eliminates 8,000 jobs in revamp

ZURICH: Novartis AG said on Tuesday a previously announced restructuring programme could lead to 8,000 jobs being cut, or about 7.4% of its global workforce, including up to 1,400 in Switzerland.

The job cuts, previously projected by chief executive officer Vas Narasimhan to be in the “single digit thousands”, are part of a restructuring programme the Swiss pharmaceutical group announced in April, targeting savings of at least $1 billion by 2024.

Novartis said in an emailed statement that it had made good progress in implementing its new organisational structure that involved integrating its pharmaceuticals and oncology business units and would lead to eliminating roles across the organisation.

The statement confirmed an earlier report by Swiss newspaper TagesAnzeiger on the cutbacks.

“This restructuring could potentially impact 1,400 positions based in Switzerland, out of around 8,000 positions impacted globally,” the company said, adding it had currently 108,000 employees globally, including 11,600 in Switzerland.

As part of the organisational overhaul unveiled in April, it said that the cost cuts would be mainly from removing overlapping structures as it will no longer run its oncology and non-oncology pharmaceuticals businesses separately.

Novartis said the new structure would be implemented over the next months.

Narasim is seeking to boost his efficiency credentials as the Swiss pharmaceutical giant is receiving huge cash windfalls, including $20.7 billion last year from the sale of its 33% stake in Roche Holding AG back to the Swiss rival, and from a possible sale of its Sandoz unit, a maker of cheap generic drugs.

Novartis has said it will complete its review of Sandoz by year-end.