Swiss pharmaceutical group Novartis has announced plans to cut up to 400 jobs at its Dublin office over the next two years as it restructures its global business in an effort to trim costs by $1 billion (€1.03bn).
The group, which employs around 1,000 people at its global service centre at Elmpark on Merrion Road, said the operation will continue to play a “vital role” within the new structure. However, the Zurich and New York-listed company, which also employs some 500 people in Ringaskiddy, Co Cork, said that up to 400 jobs could “potentially” be affected in Dublin. It comes after the company unveiled plans earlier this year to shed 8,000 jobs globally, or 7 per cent of its roughly 108,000-strong workforce.
Reiterating a statement made in April at the time of the announcement, Novartis said on Thursday that the new structure will be leaner, renewing the group’s focus on five treatment areas: cardiovascular, immunology, neuroscience, solid tumours and hematology.
It is not clear which departments it will look to trim back in Dublin but Novartis said the changes are subject to consultation with employee representatives.
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“Novartis [on Thursday] announced its intention to implement its focused strategy at the Novartis Global Service Center Dublin by end of 2024. This is a strategic decision, and part of the ongoing review of the Novartis organisation in many locations,” the group said in a statement. “Novartis recognises that announcing such an intention has a significant impact on people and creates uncertainty. Novartis is committed to keeping associates informed in as transparent and timely a manner as possible.”
Bloomberg reported in June that chief executive Vas Narasimhan has been under pressure to improve the company’s performance. “Some of the drugs that the company was counting on to drive growth have failed in clinical trials, run into safety issues or been delayed,” the media outlet reported. “The company also missed out on the Covid vaccine profits that rival Pfizer and smaller biotech firms generated during the pandemic.”
Novartis shares, down more than 6.7 per cent so far this year, fell more than 1 per cent in trading this morning.
