The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Switzerland, UK, Ireland, India, Kuala, Malaysia, Mexico and Czech republic
Sector
Manufacturing Manufacture Of Chemicals And Pharamceuticals Manufacture Of Basic Pharmaceutical Products And Pharmaceutical Preparations 21.1 - Manufacture of basic pharmaceutical products
22,000 jobs Number of planned job losses
700 jobs Number of planned job creations
Announcement Date
25 September 2018
Employment effect (start)
1 October 2018
Foreseen end date
1 January 2022
Description
The Swiss phamaceutical group Novartis has announced a reduction of its global workforce from currently 122,000 employees to less than 100,000 by 2022, with the aim reduce production costs and increase its profitability. In this framework, the group has announced 2,200 job cuts in Switzerland as well as 395 job losses in the UK with the closure of its plant at Grimsby. In Switzerland, the net job losses over the same period will be 1,750 as the company has also announced the recruitment of 450 employees in its cell and gene therapy activities located at Stein.
Out of the 2,200 job reductions, 700 will affect its services mainly based in Basel, as the activity will be distributed in service centres around the world: Dublin (Ireland), Hyderabad (India), Kuala Lumpur (Malaysia), Mexico (Mexico) and Prag (Czech republic). The management announces that it has already invited staff representatives and executives in Switzerland to dialogue and consultation. The company will offer its full support to all employees concerned, including the establishment of a job search centre, internal and external reemployment measures, a social plan and an early retirement plan. A previous worldwide restructuring is recorded in the ERM database in 2007 with 2,500 job cuts.
Sources
Citation
Eurofound (2018), Novartis, Internal restructuring in World, factsheet number 95518, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/95518.
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