Novartis To Cut About 2,100 Jobs In Switzerland And U.K. Over Next Four Years

Shutterstock photo

(RTTNews.com) - Novartis ( NVS ) said it will cut about 2,100 jobs in Switzerland and Britain over the next four years, as part of a global restructuring. The company also announced that it plans to exit its Grimsby manufacturing site in the U.K. by the end of 2020.

Novartis confirmed its strong commitment to Switzerland by maintaining 10% of its global workforce in the country, creating new technology platforms and investing more than 3 billion Swiss francs in research and development each year.

Vas Narasimhan, the Chief Executive Officer of Novartis, reportedly said the company hopes to lower its overall headcount worldwide to below 100,000, from about 126,000 today. Much of that is due to the planned spinoff of eye care unit Alcon.

The company said it will cut about 1,700 jobs in Switzerland through 2022, including 1,000 manufacturing positions and another 700 service and managerial jobs, mostly at its headquarters. Novartis reportedly plans, however, to add about 450 positions at an upcoming cell and gene therapy site in Stein, Switzerland.

Novartis noted that it has already invited staff representatives and executives in Switzerland to dialogue and consultation. The company will offer full support to all employees concerned, including the establishment of a job search center, internal and external reassignments, a social plan and retirement plans. In the context of the recently announced investment in a cell and gene therapy production facility in Stein, Novartis intends to train as many affected employees as possible to work on the new technology platform.

Taking into account the impact of the planned restructuring and the already announced division of the Alcon division, Novartis expects that approximately 10% of its global workforce will be maintained in Switzerland while this market represents less than 2% of its total sales.

Once the planned changes are implemented, Novartis' workforce in Switzerland in 2022 is expected to be about the same as in 2008, with the vast majority of employees with global functions in advanced manufacturing, R & D and enterprise management

In addition, Novartis announced that it plans to exit its Grimsby manufacturing site by the end of 2020, subject to consultation. 395 Novartis employees at the Grimsby site are directly affected by the decision, and additional contactors employed through third parties may also be impacted.

"This decision has been made alongside broader changes to our business globally, and as a result of the changes in our product portfolio which now focuses on more specialised medicines, reflective of today's changing healthcare needs. Novartis remains committed to the UK and believes that the UK is a world-leader in life sciences. Today's announcement is part of a global review of our manufacturing operations and is not linked to the decision of the UK to leave the European Union," said Haseeb Ahmad, Novartis UK Country President.

Read the original article on RTTNews (http://www.rttnews.com/2937991/novartis-to-cut-about-2100-jobs-in-switzerland-and-u-k-over-next-four-years.aspx)

For comments and feedback: contact editorial@rttnews.com

This article appears in: Stocks , World Markets , Economy , Commodities
Referenced Symbols: NVS

More from RTT News


See All RTT news

Research Brokers before you trade

Want to trade FX?