Lonza Announces Cost-cutting Measures in Visp and Basel

Lonza has announced it will reduce its fixed costs in Basel and Visp by CHF 40 million over the next 18 months as part of a company-wide re-engineering initiative. The company said the move - which will cut 193 jobs in Visp - is a measure intended to safeguard the competitiveness of its Swiss platform. Aside from downsizing, the plan also includes a review of Lonza's services, leveraging synergies and simplifying work processes.

"Our operations in Switzerland face great challenges. The global economic crisis and the structural changes in the pharma industry have accelerated and intensified the cost pressures we face, in addition to the effects of exchange rate trends with a strong Swiss franc, and increased energy and transport costs. The measures we are implementing will allow our operations in Switzerland to remain competitive," said Stefan Borgas, CEO of Lonza.