Reports related to this article:
Plant(s): View 2 related plants in PECWeb
Released October 08, 2018 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Swiss pharmaceutical major Novartis is planning to cut 2,550 jobs in Switzerland and the U.K. as the company continues its shift to higher-margin drugs.
The decision will hit its home country hardest, with up to 1,500 jobs to be shed across four production plants at Basel, Stein, Locarno and Schweizerhalle, alongside another 700 jobs in services. The company currently employs 13,000 people across Switzerland. In the U.K. the company will shut its Grimsby pill production plant with the loss of up to 400 jobs. Neighbouring Ireland has a number of manufacturing plants in Ringaskiddy and Model Farm Road in Cork, employing more than 1,600 people, but the company said the current cuts will not affect its Irish workforce.
"We are aware of the impact of today's announcement on potentially affected employees and their families," said Novartis head Vas Narasimhan. "Our medicines portfolio is evolving from high-volume products to more specialised and more personalised innovative medicines. We don't need the same scale we've historically needed. That's the evolution you're seeing in our portfolio, and that's being reflected in our manufacturing footprint."
He reaffirmed his commitment to Switzerland, home to around 10% of the company's 124,000 employees. "We are proud to maintain our global headquarters, our main research and development centre and advanced manufacturing facilities that continue to expand".
In the U.K., Haseeb Ahmad, Novartis Country President commented: "Novartis has been a part of the Grimsby community for many years so this has been a very difficult decision. The Grimsby site is an effective, well-running operation that is testament to the hard-working and dedicated employees. We will treat every employee with the utmost respect, sensitivity and fairness during this difficult time. This decision has been made alongside broader changes to our business globally, and as a result of the changes in our product portfolio, which now focuses on more specialised medicines, reflective of today's changing healthcare needs. Novartis remains committed to the U.K. and believes that the U.K. is a world-leader in life sciences. Today's announcement is part of a global review of our manufacturing operations and is not linked to the decision of the U.K. to leave the European Union."
Unions and politicians have reacted badly to the cuts. "There will be massively damaging side effects for Swiss workers, the drug industry and Switzerland's export economy," Employees Switzerland wrote in a statement. "We're not going to let Novartis destroy Basel as a centre of industry."
Last month, Industrial Info reported that Novartis is planning to build a new production plant for cell and gene therapies at its Stein site in Switzerland following approval for its chimeric antigen receptor T cell (CAR-T) cancer drug Kymriah by the European Commission (EC). For additional information, see September 12, 2018, article - Novartis Creating 450 Jobs at New Therapies Plant in Switzerland.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The decision will hit its home country hardest, with up to 1,500 jobs to be shed across four production plants at Basel, Stein, Locarno and Schweizerhalle, alongside another 700 jobs in services. The company currently employs 13,000 people across Switzerland. In the U.K. the company will shut its Grimsby pill production plant with the loss of up to 400 jobs. Neighbouring Ireland has a number of manufacturing plants in Ringaskiddy and Model Farm Road in Cork, employing more than 1,600 people, but the company said the current cuts will not affect its Irish workforce.
"We are aware of the impact of today's announcement on potentially affected employees and their families," said Novartis head Vas Narasimhan. "Our medicines portfolio is evolving from high-volume products to more specialised and more personalised innovative medicines. We don't need the same scale we've historically needed. That's the evolution you're seeing in our portfolio, and that's being reflected in our manufacturing footprint."
He reaffirmed his commitment to Switzerland, home to around 10% of the company's 124,000 employees. "We are proud to maintain our global headquarters, our main research and development centre and advanced manufacturing facilities that continue to expand".
In the U.K., Haseeb Ahmad, Novartis Country President commented: "Novartis has been a part of the Grimsby community for many years so this has been a very difficult decision. The Grimsby site is an effective, well-running operation that is testament to the hard-working and dedicated employees. We will treat every employee with the utmost respect, sensitivity and fairness during this difficult time. This decision has been made alongside broader changes to our business globally, and as a result of the changes in our product portfolio, which now focuses on more specialised medicines, reflective of today's changing healthcare needs. Novartis remains committed to the U.K. and believes that the U.K. is a world-leader in life sciences. Today's announcement is part of a global review of our manufacturing operations and is not linked to the decision of the U.K. to leave the European Union."
Unions and politicians have reacted badly to the cuts. "There will be massively damaging side effects for Swiss workers, the drug industry and Switzerland's export economy," Employees Switzerland wrote in a statement. "We're not going to let Novartis destroy Basel as a centre of industry."
Last month, Industrial Info reported that Novartis is planning to build a new production plant for cell and gene therapies at its Stein site in Switzerland following approval for its chimeric antigen receptor T cell (CAR-T) cancer drug Kymriah by the European Commission (EC). For additional information, see September 12, 2018, article - Novartis Creating 450 Jobs at New Therapies Plant in Switzerland.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
