Insider here —-
Lots to cover - I’ll try to be as succinct as possible.
Let’s start first with the Victor/Rashema call. They are toeing the line on a technicality when they say the field won’t be affected. While they are focusing on HQ cuts - their is also a clear realization that a large reduction needs to happen in the field. They acknowledge that the current headcount is not needed in a new post covid pharma sales world where access is even more limited, providers are remote and virtual calls are becoming increasingly common. Notice they didn’t definitively rule it out. Why?
There are multiple contingency plans being mapped out right now. There is a saying in Basel and it is “Novartis is a Swiss Bank parading around as a health care company.” It was a favorite line of both Joe Jimenez and Alex Gorsky for those who’ve been around awhile. Bottom line is they are giving this until October because the cuts will likely be deep and they want to give folks time to leave the company rather than pay the enhanced severance package (which is VERY expensive).
The thought process being bandied about right now is “cut once and cut deep”. They don’t want to do another round of layoffs in 18 months as that would kill morale even further. In typical NVS fashion they feel if they need folks later on they can always hire them back - just an opportunity cost of doing business.
Basel is telling the US that they foresee a global recession (or greater) kicking off in the next 3-6 months and to get “your financial house in order.”
While the field is feeling queasy - please understand no one is safe. There are layers of Directors, VPs etc that are all being left in the wind right now.
Prepare for the worst and hope for the best.
Lots to cover - I’ll try to be as succinct as possible.
Let’s start first with the Victor/Rashema call. They are toeing the line on a technicality when they say the field won’t be affected. While they are focusing on HQ cuts - their is also a clear realization that a large reduction needs to happen in the field. They acknowledge that the current headcount is not needed in a new post covid pharma sales world where access is even more limited, providers are remote and virtual calls are becoming increasingly common. Notice they didn’t definitively rule it out. Why?
There are multiple contingency plans being mapped out right now. There is a saying in Basel and it is “Novartis is a Swiss Bank parading around as a health care company.” It was a favorite line of both Joe Jimenez and Alex Gorsky for those who’ve been around awhile. Bottom line is they are giving this until October because the cuts will likely be deep and they want to give folks time to leave the company rather than pay the enhanced severance package (which is VERY expensive).
The thought process being bandied about right now is “cut once and cut deep”. They don’t want to do another round of layoffs in 18 months as that would kill morale even further. In typical NVS fashion they feel if they need folks later on they can always hire them back - just an opportunity cost of doing business.
Basel is telling the US that they foresee a global recession (or greater) kicking off in the next 3-6 months and to get “your financial house in order.”
While the field is feeling queasy - please understand no one is safe. There are layers of Directors, VPs etc that are all being left in the wind right now.
Prepare for the worst and hope for the best.