Novartis plans to add 350 new positions for biological development and manufacturing in Switzerland while cutting approximately 500 positions in traditional production, coordination, and development areas in Switzerland over the next 18 months. The move is part of the company’s ongoing transformation into an integrated business model.

The announcement was made as part of an interview with Matthias Leuenberger, Novartis Delegate for Switzerland, and posted on Novartis’ Swiss website.

The restructuring will occur over the next 18 months with the creation of the approximate 350 new jobs in Switzerland, mainly in the development and manufacture of innovative biologic-based medicines. The elimination of the approximately 500 jobs will be in the Basel region, in traditional production and in coordinating and development functions or some of these positions may be transferred to other sites.

“Last year we introduced an integrated operating model as part of the ongoing global transformation. In doing so, we want to accelerate innovation while optimizing the quality and effectiveness of our activities globally,” said Leuenberger [statement translated]. The current implementation of this model therefore entails adjustments to the workforce throughout the world. In some sectors, additional staff will be required, but in other areas, posts will be eliminated.”

In 2016, Novartis created two enterprise-wide organizations, Novartis Technical Operations (NTO) and a Global Drug Development (GDD) organization that have the goal of achieving more than $1 billion in annual cost savings by 2020. Under NTO, which has been operational since July 2016, Novartis is implementing a five-year synergy and savings roadmap. The function of NTO is to optimize capacity planning and lower costs through simplification, standardization, and external spend optimization across divisions. The GDD, which was established in the fourth quarter of 2016, oversees drug development across the company’s innovative medicines and the biosimilars portfolio to enable better resource allocation and increased research and development productivity.

Source: Novartis