Novartis has issued a warning that a previously announced reorganisation initiative might result in the elimination of 8,000 positions, or approximately 7.4 per cent of its global workforce, including up to 1,400 in Switzerland.
The job losses, which were originally estimated by Chief Executive Vas Narasimhan to be in the "tens of thousands," are part of a reorganisation programme announced in April by the Swiss pharmaceutical giant, which aims to save at least $1 billion by 2024.
In an emailed statement, Novartis said it had made considerable progress in implementing its new organisational structure, which included combining its pharmaceuticals and oncology business groups and will result in the elimination of roles across the organisation.
The statement verified an earlier story on the cuts in the Swiss publication TagesAnzeiger.
"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 April organisational makeover, it stated that the cost savings will come mostly from deleting overlapping structures because it will no longer handle its oncology and non-oncology medicines businesses independently.
Novartis stated that the new structure would be introduced in the coming months.
CEO Narasim is attempting to improve his efficiency credentials as the Swiss drug giant receives massive cash windfalls, including $20.7 billion last year from the sale of its 33 per cent stake in Roche back to the Swiss rival, as well as a possible sale of its Sandoz unit, a maker of low-cost generic drugs.
Novartis has stated that it will conclude its review of Sandoz by the end of the year.
Despite intentions to repurchase up to $15 billion in shares, Novartis has stated that it will retain sufficient spending power to acquire firms and technologies to increase its growth prospects.
(Source:www.business-today.in)
The job losses, which were originally estimated by Chief Executive Vas Narasimhan to be in the "tens of thousands," are part of a reorganisation programme announced in April by the Swiss pharmaceutical giant, which aims to save at least $1 billion by 2024.
In an emailed statement, Novartis said it had made considerable progress in implementing its new organisational structure, which included combining its pharmaceuticals and oncology business groups and will result in the elimination of roles across the organisation.
The statement verified an earlier story on the cuts in the Swiss publication TagesAnzeiger.
"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 April organisational makeover, it stated that the cost savings will come mostly from deleting overlapping structures because it will no longer handle its oncology and non-oncology medicines businesses independently.
Novartis stated that the new structure would be introduced in the coming months.
CEO Narasim is attempting to improve his efficiency credentials as the Swiss drug giant receives massive cash windfalls, including $20.7 billion last year from the sale of its 33 per cent stake in Roche back to the Swiss rival, as well as a possible sale of its Sandoz unit, a maker of low-cost generic drugs.
Novartis has stated that it will conclude its review of Sandoz by the end of the year.
Despite intentions to repurchase up to $15 billion in shares, Novartis has stated that it will retain sufficient spending power to acquire firms and technologies to increase its growth prospects.
(Source:www.business-today.in)
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