Novartis to Slash 1,400 U.S. Jobs
Novartis AG is to slash 1,400 U.S. jobs in its sales force for drugs used in general practice as it forges ahead with a push into specialty medicines and seeks to streamline its business ahead of patent expiries.
The cuts will come into effect on Jan 1, 2011 and the restructuring is expected to result in a one-time cost of around $85 million, the Swiss drugmaker said on Tuesday.
Novartis' pharmaceuticals business has over 13,000 employees in the United States, while the group as a whole has more than 18,000 workers there. The group has around 100,000 employees in total.
The news comes after cross-town rival Roche said it would slash around 6 percent of its workforce, while Germany's Bayer has said it is planning a 1 billion euro cost-cutting programme.
"There are new product launches expected within the primary care business and significant growth momentum within the specialty care business that will drive long-term success," Novartis said.
"Given these changing dynamics within the portfolio, it is critical to realign the general medicines field force to sharpen focus on the greatest opportunities for growth," the group said.
Earlier this month, Novartis said it was ramping up a group-wide efficiency drive and that it was starting to review its manufacturing as well as its marketing and sales processes.
Novartis, like most other companies in the pharmaceutical industry, will have to deal with a number of key drugs losing patent protection over the next few years, while pricing pressure in the United States and Europe is also making for a tough environment.
