AstraZeneca faces protest after layoffs

Under restructuring company sold-off its antibiotic business to Pfizer in August

Bombay Stock Exchange-listed AstraZeneca Pharma served pink slips to about 50 sales representatives on Friday in a move that may see the company’s strength of 1,200 employees being brought down significantly. The laid-off employees along with the Federation of Medical and Sales Representatives Association of India (FMSRAI) plan to move court against the company’s decision next week.

This comes at a time when the employees of erstwhile Ranbaxy are fighting for better working conditions and agitating against Sun Pharmaceutical’s “arbitrary transfers” and non-payment of wages

Sun Pharmaceutical acquired Ranbaxy in 2014. On Thursday, the Bombay High Court ordered Sun Pharmaceutical to disburse salaries of 48 sales representatives who haven’t been paid since May.

Last week, AstraZeneca wrote an email to about 50 employees inviting them for a discussion in Bengaluru. “As a part of the global initiative, in India, we are restructuring our business. We therefore request you to come to Bangalore for a discussion on this matter,” said the email which has been reviewed by the newspaper. During the meeting on Thursday at its India headquarters in Bengaluru the employees were served the pink slips.

The decision to lay off sales employees comes after the UK-headquartered multi-national company sold its antibiotics business to Pfizer in August. It now wants to focus on three main therapy areas: cardiovascular and metabolic diseases, respiratory and autoimmunity and oncology.

Forty to 50 employees were also asked to leave in the last two months following the divestment.

“A hundred more employees from the antibiotics segment will have to face the axe,” said Santanu Chatterjee, general secretary, FMSRAI. “Moreover, factory workers can also be affected in the long run if the company decides to only import drugs instead of manufacturing products in India.”

The employees, along with FMSRAI, plan to take their protest to the company’s doorsteps in Bengaluru on Monday.

“In line with the global strategy, AstraZeneca is consolidating its investments in India. We have implemented a number of initiatives which include prioritising investment, reducing discretionary spends, accelerating business capabilities and manpower rationalisation,” said a company spokesperson in response to email queries.

“Our principle is to have regular, transparent and respectful communication with our employees. AstraZeneca is fully committed to provide financial and transitional support and treat its employees with utmost fairness, sensitivity and respect through this process,” the spokesperson said, adding that the company plans to remain fully committed to maintain a significant presence through its commercial, manufacturing and IT operations.