Novartis Profits Up, Announces 2,000 Job Cuts

Restructuring plan also calls for two plant closures.

Swiss pharmaceutical giant Novartis announced 2,000 job losses on Oct. 25, mostly in Switzerland and the United States, while reporting net profits of $3.53 billion for the third quarter.

The firm said profits for the quarter were up 12% and that the job cuts were part of a $300 million restructuring program to strengthen productivity.

Sales in the July through September period increased by 18% to $14.84 billion.

Novartis said it would begin consulting with employees on the modalities of the job cuts. The company said it would create 700 new jobs, mainly in countries with a lower cost base.

The cost-saving measures are to be spread over three to five years the company said. In the plan, Novartis expects to close one plant in Switzerland ans another in Italy.

Research currently based in Switzerland would be transferred to the United States.

Copyright Agence France-Presse, 2011

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish