Pharma major Novartis to layoff 1,960 employees

Swiss pharmaceutical giant Novartis AG announced Friday it would lay off 1,960 people and will take $1.22 billion in charges to prepare for generic competition to its blood pressure pill, Diovan, and lower sales potential of the drug Tekturna, Bloomberg reported.

Most of those who will lose their jobs are pharmaceutical salespeople or work at the company's headquarters in New York City.

Novartis is the parent company of Fort Worth-based Alcon Laboratories and none of the cutbacks are expected to affect that operation as the reductions affect only Novartis Pharmaceuticals.

“We recognize that the next two years will be challenging in the Pharmaceuticals Division and we are proactively making these changes to further focus our pipeline on the best opportunities and align our market position on our growth brands,” said David Epstein,

Division Head of Novartis Pharmaceuticals, in a news release. “These are difficult but necessary decisions that will free up resources to invest in the future of our business which we view as well suited to bring new valuable therapies to patients and payors.”

In fact, Alcon Laboratories is expanding and will begin moving about 400 workers into 87,000 square feet of space at Wilcox Plaza at Green Oaks in the spring.

The move is needed to accommodate employees moving to Fort Worth from Atlanta, as well as other growth.

Source: Biz Journals