Novartis AG (ADR) (NYSE:NVS) is planning to cut 8,000 jobs or more than 7% of the pharma giant's global workforce as part of a large restructuring programme.
Some of the jobs will be transferred to the Czech Republic and India, and others, which will become redundant with the restructuring, will be eliminated, the company told its staff via email.
The Swiss group, which employs approximately 108,000 people worldwide, announced a restructuring plan in April that included shedding thousands of jobs.
The plan calls for the company to simplify its structure by uniting oncology and other pharmaceutical activities under one division.
Though there were no initial estimates of layoffs, Swiss media reported on the global number and said the company intends to slash 1,400 jobs in Switzerland, or about 12% of its workforce in that country. Novartis UK employs 1,300 staff.
Vas Narasimhan, chief executive, announced the company's new structure to employees in an email stating it would be "both leaner and simpler", but reportedly said: "This will unfortunately entail layoffs."
Novartis aims to rationalise its global functions, a spokesman told AFP, adding jobs in finance, legal services, and communications would be eliminated.
"We recognise the impact these changes will have on our people," the spokesman said.
Cost cuts and selling off divisions would save it US$1bn annually by 2024.
Novartis raised US$20.7bn last year from the disposal of a stake in Roche back to its Swiss rival with the sale of its Sandoz division also a possibility.