Novartis to cut 2,000 jobs in Switzerland, US

Swiss drugmaker Novartis plans to cut 2,000 jobs over the next 3-5 years in Switzerland and the US but it will add 700 new positions in "low cost and other countries", as part of a cost-reduction plan.

In a statement, the company said it is aiming for an annual saving of about $200 million once the cost-cutting plan, which is likely to be carried out in the next three to five years, is completed.

"In total, approximately 2,000 positions will be reduced in the group, subject to required employee consultation, mostly in Switzerland and the US offset by 700 new positions in low cost and other countries," it said.

However, it did not specify the "low cost countries" where the new 700 jobs will be added.

As part of the cost-cutting measures, the firm will shut two production sites in Switzerland and one in Italy and it will also restructure its development organisation resulting in relocation of some research activities from Switzerland to the US.

"...These changes, when completed, will result in.. annual savings of over $200 million," the company said.

Headquartered in Basel, Switzerland, Novartis employs nearly 1,15,000 people in over 140 countries. The Group is present in India through Novartis India and its wholly-owned subsidiaries Novartis Healthcare, Sandoz and Chiron Behring Vaccines.

Novartis reported net sales of $14.8 billion for the third quarter while its net income stood at $3.5 billion.