Novartis plans to cut 285 jobs at its U.S. headquarters in East Hanover as part of a restructuring announced earlier this year by the Swiss pharma giant.

According to a notice filed with the New Jersey Department of Labor and Workforce Development, the layoffs will take effect Jan. 28, 2023, and impact 221 employees with Novartis Pharmaceuticals, four employees with Novartis Services Inc. and 60 employees with Novartis Corp.

The move comes nine months after the company unveiled a new organizational structure and operating model designed to support innovation, growth and productivity ambitions as a “focused medicines company” over the next decade.

At the time, Vas Narasimhan, chief executive officer of Novartis, said, “The simpler organizational model we are unveiling today is central to our growth strategy as it will make us more agile and competitive, enhance patient and customer orientation, unlock significant potential in our R&D pipeline and drive value-creation through operational efficiencies.”

He added, “With our portfolio of in-market medicines and up to 20 major pipeline assets that could be approved by 2026, Novartis is in a strong position to deliver above-peer-median sales and margin growth in the mid- and long-term.”

Under the plan, Novartis combined its pharmaceuticals and oncology business units into two separate commercial organizations with a stronger geographic focus – Innovative Medicines U.S. and Innovative Medicines International. The changes – which also impact various other divisions within the company – are expected to save at least $1 billion by 2024 and guarantee sales growth of at least 4% until 2025, according to Novartis.

As a result, approximately 8,000 positions are being eliminated around the world, or about 7% of the company’s workforce.

“The new structure will be a leaner organizational model that is aligned with our focused strategy and will support innovation, growth and productivity,” a Novartis spokesperson told NJBIZ.

“We recognize the impact these changes have on our people,” the spokesperson went on to say. “The company is offering support for impacted associates, including outplacement services and career counseling, as well as support finding new roles within the company. All impacted associates were notified earlier this year and are receiving enhanced severance packages.”

According to Novartis, the affected positions in New Jersey are in the former pharmaceuticals and oncology divisions, certain functions of global drug development and certain business units that were part of customer technology solutions, as well as in communications and engagement, ethics risk and compliance, finance, global security, legal, public affairs and people and organizations.