Swiss pharmaceutical giant Novartis announced 2,000 job losses today, mostly in Switzerland and the US, while reporting net profits of $3.53 billion (€2.5 billion) for the third quarter.
The firm said that profits for the quarter were up 12% and that the job cuts were part of a $300m restructuring programme to strengthen productivity. Sales in the months from July to September increased by 18% to $14.84 billion.
Novartis said it would begin consulting employees on the modalities of the job cuts. The company said it would create 700 new jobs, mainly in countries with a lower cost base.
The cost-saving measures are to be spread over three to five years the company said. In the plan, Novartis expects to close one plant in Switzerland an another in Italy. Research currently based in Switzerland would be transferred to the US, Novartis said
