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“Our corporate culture remains fundamental to our work, and I am grateful for the continued commitment of our employees, their enthusiasm and commitment to driving our performance,” writes CEO Vas Narasimhan in the latest annual report, published in January.
It is now known that Novartis wants to forego the enthusiasm and commitment of up to 440 development employees in Switzerland. Their positions are to be reduced over a period of three years. Up to 240 jobs could also be cut in the USA.
There are people behind the numbers
Out of 10,400 employees in Switzerland (78,400 employees worldwide), 440 jobs may be few. But behind the bare numbers are people for whom their dismissal will be bitter. Especially since Novartis presented good results in January: ten percent more sales and the core operating result improved by 18 percent. CEO Vas Narasimhan earned 2023 16.2 million francs.
What is hard from the perspective of those affected makes sense from the company’s perspective: In recent years, Novartis has transformed itself from a company that had all sorts of divisions, from veterinary medicine and ophthalmology to vaccines and generics, into a pure pharmaceutical company. The last steps towards this were the spin-offs of Alcon (ophthalmology) in 2019 and last year of Sandoz (generics). The change in strategy now means that certain job profiles are no longer needed.
Clear focus
Today Novartis is focusing on these areas Cardiovascular and kidney, immunology, nervous system and oncology. The company also pursues a clear strategy from a technological perspective: chemically and biologically produced drugs, RNA-based drugs, radionucleotide and gene and cell therapy. Novartis has acquired the last three areas in recent years. Novartis is trying to achieve a leading position here and strengthen its innovative strength. The company also sets clear geographical priorities for its markets in the United States, China, Germany and Japan.
The good news is that Novartis not only wants to cut jobs, but also create new ones – due to the new direction. In Basel, up to 40 new jobs are to be created in the development department this year.
Liz Horowitz
Business editor
Open the people box. Close the people box
Liz Horowitz works as a business editor and documentary filmmaker at SRF.