8,000 Novartis jobs are eliminated globally

8,000 Novartis jobs are eliminated globally

As part of a significant reorganization effort, Swiss pharmaceutical giant Novartis is eliminating roughly 8,000 employees globally, or little over seven percent of its global workforce.

As part of a reorganization plan revealed in April, Novartis, which employs about 108,000 people worldwide, acknowledged late Tuesday that it would eliminate thousands of jobs.

With that strategy, the business hopes to streamline its organizational structure, combining, for example, its pharmaceutical and oncology operations into a single division.

The corporation planned to cut 1,400 positions in Switzerland, or around 12 percent of its personnel there, according to Swiss media, which also reported the global number of layoffs on Tuesday.

The CEO of Novartis, Vas Narasimhan, claimed that the organization's new structure will be "both smaller and simpler" in an email to staff members.

However, he noted that this "would, regrettably, imply layoffs," according to the Tages-Anzeiger daily.

Some positions will be moved to the Czech Republic and India, while others that are no longer necessary due to the restructure will be removed, it stated.

A Novartis official told AFP that the business intended to "rationalise our global functions" and that positions in finance, legal services, and communications will be eliminated.

We understand how these changes would affect our employees, he said, pledging that the business would "ensure we meet all standards for employee consultation, via representative bodies where relevant, and give outplacement and career counseling help to those who are impacted."

By 2024, the business predicted, thanks to the division sales, reduced administrative costs, and total cost savings from the reorganization plan, it would have $1 billion more in its coffers.