Novartis slashing thousands more jobs in global reorganization

[Anonymous]

Novartis slashing thousands more jobs in global reorganization, shifting many to India
February 2, 2014 | By Tracy Staton
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CommentPrintContact AuthorReprintNovartis' 500 Swiss job cuts announced earlier this month are just the tip of a global iceberg. The company plans to cut or shuffle up to 4,000 jobs in its pharma business, with many of the positions moving to a new operations center in Hyderabad, India, a Swiss newspaper reports.

The news comes two weeks after CEO Joe Jimenez pronounced his dissatisfaction with the company's operating margins, and days after two back-to-back job-cutting announcements. And Novartis ($NVS) is in the midst of a worldwide strategic review. "I am not satisfied with operating margins," Jimenez said at an investor conference (as quoted by the NZZ am Sonntag). "We intend to increase these margins over time, and we begin now."


Joe Jimenez

Soon after, the company announced its Swiss layoffs and rehires. The company plans to cut 500 jobs in Switzerland from R&D and administrative functions, while hiring another 500 or so Swiss workers for different positions in the pharma business, as well as generic drugs and over-the-counter products. According to the NZZ, half of the 500 jobs cut are moving to the Hyderabad service center. India is a lower-wage market, so maintaining the same number of jobs there would cost less.


At the time, Novartis took care to stress that its employment in Switzerland would remain about the same. It says the same about this latest news, only this time, it's speaking globally. Now, Novartis tells the NZZ that its overall worldwide workforce will remain "relatively stable" despite cuts and transfers in various geographic locations. The various layoffs and new hires are designed to help the pharma division "free up resources, prioritize and redistribute" as it prepares for new product launches.

The job moves are also part of a global reworking of its business-services and back-office functions. "Novartis began some time ago to incorporate appropriate back-office and other activities in Centers of Excellence and Global Business Solutions Centers," the company told the NZZ. "We continue the implementation of this plan. The number of internal positions which are now being resettled in Novartis service centers or from third parties will rise as a result."

The Hyderabad service center is taking shape in newly leased office space that can accommodate up to 8,000 employees. The Hyderabad site will open in late 2015, Novartis told the newspaper. According to the NZZ, Novartis is recruiting workers in IT, human resources, clinical trial monitoring and more via Indian job portals.

Novartis has already been cutting jobs in a worldwide restructuring. On top of the Swiss cuts, this month the company marked a manufacturing plant in New York for shutdown; some 525 employees work there. The company's off-patent blood pressure drug Diovan is made there, and Novartis expects the drug to see head-to-head generic competition sometime this quarter. Last year, the company rolled out a series of layoffs, with several hundred at each of two manufacturing sites, plus another several hundred in R&D, each announced individually. The total amounted to more than 1,000 jobs.

Those cuts followed 2,000 announced in early 2012, and another in October 2011 involving a similar number. Meanwhile, the company added at least 700 employees in India and China, both low-wage markets. The company has shut down or sold 20 manufacturing facilities worldwide over the past four years, Jimenez said last week.

- read the Reuters news
- get more from NZZ am Sonntag (in German)

Special Reports: Top 10 largest pharma layoffs of 2013 - Novartis | Top 10 pharma layoffs of 2012 - Novartis

Related Articles:
Novartis puts New York Diovan plant next on its shutdown list
Novartis to cut 500 Swiss pharma jobs, then staff up in OTC, generics
300 Novartis workers to be sacked when Alcon plant closes next year
Novartis rewards Swiss OTC plant, takes ax to Lincoln



Read more: Novartis slashing thousands more jobs in global reorganization, shifting many to India - FiercePharma http://www.fiercepharma.com/story/n...4000-jobs-many-india/2014-02-02#ixzz2tPNqmEjA
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[Anonymous]

Does this affect (re-org & job cuts) the oncology division in East Hanover as that division seems immune to many of the cuts over the years?

 

[Anonymous]

Does this affect (re-org & job cuts) the oncology division in East Hanover as that division seems immune to many of the cuts over the years?

My guess your time is coming as your drugs become generic and nothing in the pipeline.

 

[Anonymous]

Novartis slashing thousands more jobs in global reorganization, shifting many to India
February 2, 2014 | By Tracy Staton
Share


Tools
CommentPrintContact AuthorReprintNovartis' 500 Swiss job cuts announced earlier this month are just the tip of a global iceberg. The company plans to cut or shuffle up to 4,000 jobs in its pharma business, with many of the positions moving to a new operations center in Hyderabad, India, a Swiss newspaper reports.

The news comes two weeks after CEO Joe Jimenez pronounced his dissatisfaction with the company's operating margins, and days after two back-to-back job-cutting announcements. And Novartis ($NVS) is in the midst of a worldwide strategic review. "I am not satisfied with operating margins," Jimenez said at an investor conference (as quoted by the NZZ am Sonntag). "We intend to increase these margins over time, and we begin now."


Joe Jimenez

Soon after, the company announced its Swiss layoffs and rehires. The company plans to cut 500 jobs in Switzerland from R&D and administrative functions, while hiring another 500 or so Swiss workers for different positions in the pharma business, as well as generic drugs and over-the-counter products. According to the NZZ, half of the 500 jobs cut are moving to the Hyderabad service center. India is a lower-wage market, so maintaining the same number of jobs there would cost less.


At the time, Novartis took care to stress that its employment in Switzerland would remain about the same. It says the same about this latest news, only this time, it's speaking globally. Now, Novartis tells the NZZ that its overall worldwide workforce will remain "relatively stable" despite cuts and transfers in various geographic locations. The various layoffs and new hires are designed to help the pharma division "free up resources, prioritize and redistribute" as it prepares for new product launches.

The job moves are also part of a global reworking of its business-services and back-office functions. "Novartis began some time ago to incorporate appropriate back-office and other activities in Centers of Excellence and Global Business Solutions Centers," the company told the NZZ. "We continue the implementation of this plan. The number of internal positions which are now being resettled in Novartis service centers or from third parties will rise as a result."

The Hyderabad service center is taking shape in newly leased office space that can accommodate up to 8,000 employees. The Hyderabad site will open in late 2015, Novartis told the newspaper. According to the NZZ, Novartis is recruiting workers in IT, human resources, clinical trial monitoring and more via Indian job portals.

Novartis has already been cutting jobs in a worldwide restructuring. On top of the Swiss cuts, this month the company marked a manufacturing plant in New York for shutdown; some 525 employees work there. The company's off-patent blood pressure drug Diovan is made there, and Novartis expects the drug to see head-to-head generic competition sometime this quarter. Last year, the company rolled out a series of layoffs, with several hundred at each of two manufacturing sites, plus another several hundred in R&D, each announced individually. The total amounted to more than 1,000 jobs.

Those cuts followed 2,000 announced in early 2012, and another in October 2011 involving a similar number. Meanwhile, the company added at least 700 employees in India and China, both low-wage markets. The company has shut down or sold 20 manufacturing facilities worldwide over the past four years, Jimenez said last week.

- read the Reuters news
- get more from NZZ am Sonntag (in German)

Special Reports: Top 10 largest pharma layoffs of 2013 - Novartis | Top 10 pharma layoffs of 2012 - Novartis

Related Articles:
Novartis puts New York Diovan plant next on its shutdown list
Novartis to cut 500 Swiss pharma jobs, then staff up in OTC, generics
300 Novartis workers to be sacked when Alcon plant closes next year
Novartis rewards Swiss OTC plant, takes ax to Lincoln



Read more: Novartis slashing thousands more jobs in global reorganization, shifting many to India - FiercePharma http://www.fiercepharma.com/story/n...4000-jobs-many-india/2014-02-02#ixzz2tPNqmEjA
Subscribe at FiercePharma

Switzerland - "The company plans to cut 500 jobs in Switzerland from R&D and administrative functions, while hiring another 500 or so Swiss workers for different positions in the pharma business, as well as generic drugs and over-the-counter products."

"At the time, Novartis took care to stress that its employment in Switzerland would remain about the same."

Bottom line -The net job loss in Swiss is Zero.

Everywhere else - "It says the same about this latest news, only this time, it's speaking globally. Now, Novartis tells the NZZ that its overall worldwide workforce will remain "relatively stable" despite cuts and transfers in various geographic locations."

"Those cuts followed 2,000 announced in early 2012, and another in October 2011 involving a similar number. Meanwhile, the company added at least 700 employees in India and China, both low-wage markets. The company has shut down or sold 20 manufacturing facilities worldwide over the past four years, Jimenez said last week."

"The Hyderabad service center is taking shape in newly leased office space that can accommodate up to 8,000 employees. The Hyderabad site will open in late 2015, Novartis told the newspaper. According to the NZZ, Novartis is recruiting workers in IT, human resources, clinical trial monitoring and more via Indian job portals."

Bottom line - everywhere but Switzerland we are cutting jibs and sending them to India.

 

[Anonymous]

Switzerland - "The company plans to cut 500 jobs in Switzerland from R&D and administrative functions, while hiring another 500 or so Swiss workers for different positions in the pharma business, as well as generic drugs and over-the-counter products."

"At the time, Novartis took care to stress that its employment in Switzerland would remain about the same."

Bottom line -The net job loss in Swiss is Zero.

Everywhere else - "It says the same about this latest news, only this time, it's speaking globally. Now, Novartis tells the NZZ that its overall worldwide workforce will remain "relatively stable" despite cuts and transfers in various geographic locations."

"Those cuts followed 2,000 announced in early 2012, and another in October 2011 involving a similar number. Meanwhile, the company added at least 700 employees in India and China, both low-wage markets. The company has shut down or sold 20 manufacturing facilities worldwide over the past four years, Jimenez said last week."

"The Hyderabad service center is taking shape in newly leased office space that can accommodate up to 8,000 employees. The Hyderabad site will open in late 2015, Novartis told the newspaper. According to the NZZ, Novartis is recruiting workers in IT, human resources, clinical trial monitoring and more via Indian job portals."

Bottom line - everywhere but Switzerland we are cutting jibs and sending them to India.

"Switzerland has a stable, prosperous and high-tech economy. In 2011 it was ranked as the wealthiest country in the world in per capita terms (with "wealth" being defined to include both financial and non-financial assets), while the 2013 Credit Suisse Global Wealth Report showed that Switzerland was the country with the highest average wealth per adult in 2013.[77][78][79] It has the world's nineteenth largest economy by nominal GDP and the thirty-sixth largest by purchasing power parity. It is the twentieth largest exporter, despite its size. Switzerland has the highest European rating in the Index of Economic Freedom 2010, while also providing large coverage through public services.[80] The nominal per capita GDP is higher than those of the larger Western and Central European economies and Japan.[81] If adjusted for purchasing power parity, Switzerland ranks 8th in the world in terms of GDP per capita, according to the World Bank and IMF (ranked 15th according to the CIA Worldfactbook[81]).
The World Economic Forum's Global Competitiveness Report currently ranks Switzerland's economy as the most competitive in the world,[82] while ranked by the European Union as Europe's most innovative country.[83] For much of the 20th century, Switzerland was the wealthiest country in Europe by a considerable margin (by GDP – per capita).[84] In 2007 the gross median household income in Switzerland was an estimated 137,094 USD at Purchasing power parity while the median income was 95,824 USD.[85] Switzerland also has one of the world's largest account balances as a percentage of GDP.

Health

Swiss citizens are universally required to buy health insurance from private insurance companies, which in turn are required to accept every applicant. While the cost of the system is among the highest, the system compares well with other European countries in terms of health outcomes, so patients are largely satisfied with it. In 2012, life expectancy at birth was 80.4 years for men and 84.7 years for women.[150] These are the world's highest life expectancy.[151][152] However, spending on health is particularly high, with 11.4% of GDP (2010), however in par with Germany and France (11.6%) and other European countries, but far less than in USA (17.6%).[153]

http://en.wikipedia.org/wiki/Switzerland