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Basel-based pharmaceutical firm Novartis has revealed it is cutting 2,500 jobs worldwide by 2010.
The drug giant is the latest major manufacturer to axe workers in the face of rising costs, patent expirations and pipeline struggles.
The company had already announced in October that it was slashing 1,260 marketing and sales jobs in the US, and the new cuts represent about 2.5% of the company’s global workforce.
But it hopes the move will eventually help it save $1.6bn (£784m).
Chairman and chief executive Daniel Vasella said: We have taken the opportunity given the short-term down-cycle in our pharmaceuticals business to initiate this project.
“This will simplify our organisation and redesign the way we operate.”
The company has struggled with increased regulatory demands and stronger competition from generics in the US.
Growth in the American market will be affected by the loss of sales from bowel drug Zelnorm (tegaserod maleate) and generic competition for the company’s Lamisil (terbinafine), Lotrel (amlodipine/benazepril), Famvir (famciclovir) and Trileptal (oxcarbazepine) drugs, Novartis added.
“We expect the first quarter to again be strongly negative, while there will be around zero growth in the second (quarter),” Vasella said.
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