Novartis is to cut its total global workforce to 100,000.

Swiss pharmaceuticals giant Novartis is to cut 2.5% of its global workforce as part of a restructuring process aimed at saving the company US$1.6 billion (£78 million).

The company said the initiative, which is named ‘Forward’, will see 2,500 positions slashed by 2010, bringing its total workforce to 100,000.

The move will enable the company to focus its resources on the research and development of new medicines, as well as allowing it to concentrate on core activities and systematically capture growth opportunities – particularly in emerging markets, it said.

Dr. Daniel Vasella, Chairman and CEO of Novartis, commented on the move: “[This project] will simplify our organisation and redesign the way we operate. ‘Forward’ will increase speed and productivity in anticipation of accelerating growth in the second half of 2008.”
 
Novartis said it has a positive outlook for its strategic portfolio which includes pharmaceuticals, generics, vaccines and diagnostics, and consumer brands.

Key growth drivers include the ongoing launches of new medicines following the industry-leading 14 positive regulatory approvals during 2007 in the US and Europe as well as strong expansion in other businesses, particularly in Vaccines and Diagnostics and Sandoz, the generics division of Novartis.

The company said it expects many of the job cuts to be made through “normal fluctuations in staffing levels.”

By Natasha Piscitelli