Novartis to Cut Over 2000 Jobs in Switzerland, UK

Novartis announced that it will slash more than 2,000 jobs by 2022, including eliminating 1,700 positions in Switzerland and around 400 roles in the UK, as it looks to increase profitability. The move comes as the company consolidates manufacturing and shifts positions elsewhere as part of plans revealed in 2016 to realize $1 billion in annual cost savings in its production network by 2020.

Under the overhaul, 1000 jobs will be lost in Switzerland as Novartis continues to adapt its global manufacturing network, with sites in Basel, Locarno Schweizerhalle and Stein affected. Meanwhile, a further 700 employees in Switzerland will be cut as the company implements its service business strategy, with management roles relocated from Basel to existing business centers in Ireland, India, Malaysia, Mexico, and Czech Republic.

“We continue our efforts to make Novartis more efficient and agile, and to create a company that innovates sustainably and delivers breakthrough medicines to patients,” remarked CEO Vas Narasimhan, adding “although the planned changes will take 4 years, we wanted to communicate early and transparently.”

In addition, Novartis will also shutter its manufacturing site in Grimsby, UK, by 2020. According to Haseeb Ahmad, Novartis’ UK country president, the decision to close the Grimsby site is part of a global production strategy and “not linked to the decision of the UK to leave the EU.” Ahmad added “Novartis remains committed to the UK and believes that the UK is a world leader in life-sciences.”

However, Novartis indicated that up to 450 new positions will be created in Switzerland under previously announced plans to expand its Aargau facility for cell and gene therapies.