Novartis Announced 1,250 Job Cuts

Around 1,250 jobs are to go at pharmaceutical giant Novartis from its US based operation as part of its restructuring of its pharmaceutical products division over the course of the next year, according to a statement made by the company today.

A spokesperson for the company today said that the impact of falling sales on its drug markets had led to a necessary overhaul of the current management structure within its drugs division in order to pave the way for greater efficiency and increased margins. Unfortunately as a result the company has been forced to announce 1,250 job cuts to help meet savings targets.

The Swiss company has been under pressure from generic brand competition for many of its drugs in recent months, with overall revenue figures falling over the third quarter by some 2% as a result. For this reason, the company has decided to invest in restructuring, despite the employment cost of 1,250 jobs.

Profits for the third quarter were also down on the same figures last year, reflecting the extent of the downturn in salers versus expenses. The 12% fall in net profits from $1.8 billion to $1.6 billion underlines the growing problem for the company and the health of its drugs brands.

One positive influence on the company’s trading figures was an increase in profits from its Gerber baby foods division, and sales of Medical Nutrition units which raised profit figures for the division up to $6.87 billion.

The company today speculated that the result of the job losses would be an annual saving of around $230 million for the company, which will undoubtedly go towards helping its recovery in the global market.

Meanwhile it cited its poor figures as a result of a key brand being withdrawn from the market for health reasons, and the strong competition from generic versions of some of its key flagship drugs.

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