Novartis to implement additional job cuts: Vasella to WSJ

Share this article:
Novartis CEO Daniel Vasella
Novartis CEO Daniel Vasella

Novartis is planning to cut around 2,500 jobs globally, or 2.5% of its workforce, as part of a plan to cut costs and boost growth, Novartis CEO Daniel Vasella told The Wall Street Journal Europe in an interview this week.

The latest job cuts come on top of the 1,260 positions Novartis is eliminating in its US pharmaceutical division after a year of disappointing earnings and product setbacks.
"We have taken the opportunity given the short-term down-cycle in our pharmaceuticals business to initiate this project," Vasella told The Journal. "This will simplify our organization and redesign the way we operate."

The restructuring should be implemented during 2008 and 2009 and is aimed at creating annual pretax cost savings of about $1.6 billion in 2010, Novartis said.

Staff cuts should be achieved through staff fluctuation, vacancy management and social programs, The Journal reported.

Novartis also said it will streamline its divisions, improve its sales force organization and start to expand its presence in emerging markets such as Northern and Sub-Saharan Africa, Central Asia and parts of Southeast Asia. Novartis experienced tough losses on a number of key products.

Zelnorm sales fell 80% after the company was forced to pull the irritable bowel treatment from the market in March due to safety concerns. And generic competition caught up Lamisil, Lotrel and Famivir. A top pipeline prospect, type 2 diabetes drug Galvus, was delayed at the FDA.

Share this article:

Email Newsletters

More in News

House bill would speed approval once EU OKs same product

House bill would speed approval once EU OKs ...

The Speeding Access to Already Approved Pharmaceuticals Act of 2014 would require FDA to expedite the review of pharmaceuticals that are already approved by the European Union

Allergan touts reorg, plans to lay off 13% of workforce

Allergan touts reorg, plans to lay off 13% ...

Allergan's second-quarter earnings, and a new round of cuts, are now part of the Botox maker's record as it seeks to remain independent.

Shire, AbbVie join forces for $55B

Shire, AbbVie join forces for $55B

The deal includes a $1.6-billion fee if AbbVie tries to walk away.