During its third-quarter report, released today, pharmaceutical company Novartis AG announced 2,000 layoffs from its Swiss and U.S. operations.
This round of cuts will come from its Group segment, which has a strong presence in East Hanover, although approximately 1,000 of the positions affected are based in Switzerland. The company, which is not providing specific U.S. breakouts, said these cuts will be offset by 700 jobs created in other, lower-cost countries.
“We must maintain our global investment in R&D at the high end of the industry in order to protect our ability to deliver on this mission. To that end, we are announcing a series of proposed actions to improve productivity and absorb pricing pressures. These proposed actions primarily impact Switzerland and the U.S., as our cost basis is highest in these countries,” Novartis said in a statement.
The company, which has its headquarters in Switzerland, also announced two sites in Switzerland and one in Italy will be closing over the next three to five years, and the development organization will be restructured. Novartis is also relocating some research activities from Switzerland to the United States.
Novartis has 42 U.S. locations, with a presence in Parsippany and Princeton as well as in East Hanover. The company announced in December a round of 1,400 layoffs, 32 of which were in New Jersey.
During the third quarter, Novartis increased its net sales to $14.8 billion, according to the report.
CORRECTION: A previous version of this story and headline said Novartis’ East Hanover location would be strongly affected by the layoffs. The company would not break out cuts by location.