Novartis has begun 2014 by announcing a total of more than 1,000 job cuts in Basel, Switzerland and New York, US.
The Swiss drugmaker said it will make changes across several functions in its pharmaceutical division in Switzerland 'to ensure the necessary resources for planned product launches in 2014'. This will involve 'the reduction of jobs in some areas and additions in others', the firm said. Novartis will cut up to 500 jobs in the region, mainly in headquarters support functions and operational roles in pharmaceuticals development. Some jobs are expected to be concentrated in fewer locations.
Overall Novartis Group headcount in Switzerland is expected to remain 'relatively stable' in 2014. The firm added 750 jobs in 2013, an increase of 5% over the previous year, bringing total headcount to about 15,000. The majority of the 4,000 jobs created since 2005 have been located in the Basel region. While approximately 1% of global Novartis sales come from Switzerland, about 12% of staff are based there.
Planned product launches this year include areas such as respiratory (branded and generic), lung cancer, dermatology and heart disease. To support these and other growth areas across the Novartis Group in Switzerland, the firm said:'Several hundred jobs are expected to be added in areas such as oncology development, OTC manufacturing (addition of a third shift in Nyon) and Sandoz supply chain management.'
All active clinical programmes in Switzerland will remain in place, said Novartis, and Basel will continue to be one of 'the three strategic research pillars worldwide'.
A consultation process with employee representation groups has begun.
Novartis also plans to close its manufacturing plant in Suffern, New York, which will affect 525 jobs. The firm said the loss of exclusivity for high blood pressure drug Diovan has 'significantly reduced the future production demand on the Suffern site' and 'the site’s future volumes would be significantly below the minimum required to operate it cost effectively'.
The closure process will begin in the second quarter and will be completed over the next two to three years. Some functions may be transferred to other Novartis sites depending on business needs.
'This difficult decision was a strategic choice made to optimise our manufacturing infrastructure,' the firm said.