Novartis to cut 400 Irish jobs in ‘major blow’ to Irish pharma industry

Novartis facility in Ringaskiddy, which develops medicines through advanced therapy platforms and data science.

Pharmaceutical giant Novartis announced plans to cut its Irish workforce by a quarter, putting 400 jobs at risk.

Tánaiste and business minister Leo Varadkar said that "although the job losses are not unexpected", they will come as "a major blow to workers and their families".

The cost-saving cuts are set to impact staff working at the Novartis Global Service Center (NGSC) in Dublin, where most of company’s Ireland-based employees work.

The Swiss multinational did not signal any jobs would be cut at its manufacturing site in Ringaskiddy Co Cork. Around 210 people work at the site, after the company previously announced plans to cut 320 jobs there.

Novartis said the Dublin site will continue to play a critical role for the company, following the cost-saving cuts.

"Ireland is an important location for Novartis due to its unique eco-system of highly educated, skilled and adaptable workforce which is critical in the knowledge-intensive, high-science, pharma sector," Novartis said.

Prior to the job cuts announcement, Novartis employed 1,500 people across Ireland. This number will drop to around 1,100 by the end of 2024 as Novartis aims to make the company "leaner and simpler".

Novartis’s plans to slim down its Irish operations are part of an overall cost-saving strategy. 

Approximately 8,000 jobs worldwide, out of a total 108,000 jobs, could be cut in the next two years as part of this restructuring plan. This is expected to save the company at least €1bn by 2024.

The company has not yet stated specifically what jobs are in jeopardy at its NGSC or revealed the details of any redundancy packages. 

All of the world's top 10 pharmaceutical companies have operations in Ireland, making the country the fifth largest exporter of pharmaceuticals globally, according to state investment agency IDA Ireland.

Jobs growth among multinationals in Ireland soared to record levels in the first half of 2022, helping push the unemployment rate to a near 21-year low of 4.3% and keeping the economy growing strongly despite inflationary pressures.

Novartis, like many other pharma manufacturers, is constantly reviewing its global manufacturing supply chains and costs. 

- Additional reporting by Reuters