Novartis Axing 320 Jobs at Irish Manufacturing Plant

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Swiss pharmaceutical company Novartis International AG (NYSE:NVS) (Basel, Switzerland) is axing more than half of the employees at its Irish active pharmaceutical ingredient (API) manufacturing operation at the Ringaskiddy campus in Cork by mid-2022.

The company's management described the move to cut 320 jobs as a strategic decision, "part of the ongoing evaluation of the Novartis manufacturing network around the world and transformation programmes. These changes could impact up to 320 employees at the Novartis Ringaskiddy campus, subject to consultation," it stated. Novartis was one of the first pharmaceutical companies to establish itself in Ireland in the 1950s.

The 550 employees at Ringaskiddy were informed of the shock decision last week. Novartis is seeking 240 redundancies in the API plant and a further 80 in the Global Service Centre on-site. The decision to consolidate its API manufacturing operations at the campus will result in the closure of one of its production buildings by mid-2022. Industrial Info is tracking 40 Novartis global projects worth $765 million in investment.

Shane Relihan, managing director of Novartis Ringaskiddy Limited said: "Today is a very difficult day for everyone associated with Novartis Ringaskiddy. With a proud reputation of making medicines for over 25 years, it is important to say that this decision is not a reflection of the performance of our dedicated colleagues who have worked hard to supply our customers and patients."

He added: "While people absorb the news, we want to reassure our colleagues and their families that there is no immediate impact. Novartis will work with our employees and representative groups to support everyone during this period ahead, providing severance packages and outplacement services. We will also work with our industry partners across the pharmaceutical industry cluster here in Cork to identify future employment opportunities in the area."

Novartis has been implementing an overall plan to focus on higher-margin medicines, which has seen the company spinning off certain businesses and making cuts in its manufacturing businesses. Last year, Industrial Info reported on plans by Novartis to cut 2,550 jobs in Switzerland and the U.K. That decision hit its home country hardest, with up to 1,500 jobs to be shed across four Swiss production plants at Basel, Stein, Locarno and Schweizerhalle. The company currently employs 13,000 people across Switzerland. In the U.K., the company also planned to shut its Grimsby pill production plant with the loss of up to 400 jobs. For additional information, see October 8, 2018, article - Novartis Axing 2,550 Jobs in Switzerland and the U.K..

The Ringaskiddy campus comprises the manufacturing site, Novartis Ringaskiddy Limited (NRL) and Novartis International Pharmaceutical Ltd, Branch Ireland (NIPBI), which is comprised of the International Services Laboratory, the external supply organisation, supply chain and administrative functions. The API plant has been operational since 1994, and the campus has benefitted from investment of 850 million euro ($944 million) over the years.

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