Novartis Announces 680 Layoffs in Development Group Amid Corporate Restructuring

1. Novartis, a pharmaceutical giant, announced plans to lay off approximately 680 staff members in its development organization on April 9, 2024.
2. The workforce reductions will take place across Switzerland and the United States over the next two to three years, with 440 jobs removed in Switzerland and 240 in the US.
3. The layoffs are part of a larger restructuring program that could see the dismissal of up to 8,000 employees globally.
4. Following the layoffs, Novartis aims to ramp up hiring for additional roles, making the global net staff reduction 1%-2%.
5. The restructuring is intended to help local talent, such as data scientists and regulatory specialists, in Britain.
6. As of the 2023 annual report, Novartis had 76,057 workers worldwide, with approximately 18,200 in the research and development department.
7. The announcement comes after a series of high-value deals and acquisitions, including the $2.9 billion buyout of MorphoSys and the $835 million acquisition of IFM Therapeutics.
8. In October 2023, Novartis completed the spin-off of its generics subsidiary Sandoz, allowing the company to focus on developing innovative medicines.
9. Novartis has adopted a "U.S.-first" mindset, aiming to become a top 5 drugmaker in the U.S. by 2027 and increasing its U.S. presence.