Swiss Pharmaceutical Giant Plans Restructuring to Optimize Operations and Innovation
Novartis, the Swiss pharmaceutical giant renowned for its innovative drug development, has disclosed plans to reduce its workforce significantly, particularly within its development organization. The company’s restructuring initiative aims to streamline operations and optimize resources, impacting approximately 8,000 roles globally.
The announcement, made on Tuesday, reveals that Novartis intends to eliminate around 680 positions in its development sector, with approximately 440 jobs in Switzerland and up to 240 in the United States over the next two to three years. However, these reductions are separate from a broader restructuring effort that could see the elimination of up to 8,000 positions across Novartis’s global workforce of 78,000 employees.
This strategic move aligns with similar actions within the pharmaceutical industry, with Novartis’s Swiss counterpart Roche having previously announced job cuts in product development earlier in the year. Novartis currently employs about 12,500 individuals in development, with critical functions such as drug regulation, analytics, quality assurance, and post-research production process design.
Despite the reductions, Novartis has emphasized its commitment to creating new positions over the coming years, resulting in a net reduction of only 1-2% globally. The company aims to reshape its capabilities by tapping into local talent pools, particularly in areas such as data science and regulatory expertise, notably in Britain.
While acknowledging the impact of these changes, Novartis has reiterated its dedication to development efforts in Switzerland and the United States. Switzerland serves as the company’s innovation hub for complex development, while the United States remains a crucial development center with significant representation in global program teams advancing Novartis’s medicines pipeline.
In essence, Novartis’s restructuring endeavors seek to streamline operations while maintaining a strategic focus on innovation and drug development in key global markets.
