Novartis to cut up to 8,000 jobs 

The pharmaceutical giant, which employs 1,500 people across three locations in Cork and Dublin, will kick off a restructuring programme over the coming months 

The plan involves integrating the company's pharmaceuticals and oncology business units, eliminating over 1,000 roles at its Basel base. Around 6,600 more jobs are at risk globally.

Novartis could cut nearly 8,000 jobs, or 7.4% of its global workforce, as part of a major restructuring programme.

The Swiss pharmaceutical giant, which employs 1,500 people across three locations in Cork and Dublin, first announced the cuts in April but more details of the plans have emerged this week.

In an emailed statement, Novartis said it had made good progress in implementing its new organisational structure which targets savings of $1bn (€950m).

The plan involves integrating the company's pharmaceuticals and oncology business units and removing overlapping structures, eliminating over 1,000 roles at its Basel base. 

Around 6,600 more jobs are at risk globally as the restructuring kicks off over the next few months.

"This restructuring could potentially impact 1,400 positions based in Switzerland, out of around 8,000 positions impacted globally," the company said.

CEO Vas Narasimhan is seeking to boost his efficiency credentials as the Swiss drug major is receiving huge cash windfalls, including $20.7bn (€19.8bn) last year from the sale of its 33% stake in Roche back to the Swiss rival, and from a possible sale of its Sandoz unit, a maker of cheap generic drugs.

Novartis has also missed out on potential Covid-19 vaccine profits.

Despite plans to buy back up to $15bn (€14.3) worth of shares, Novartis has said it would retain enough spending power to buy companies and technologies to boost its growth prospects.

The company's shares fell 1.1% in Zurich following the news.

• Additional reporting from Paul Carrel, Silke Koltrowitz and Paul Arnold (Reuters)