Novartis announces profit, cuts 2,000 jobs

Swiss pharmaceutical giant Novartis has said it will cut 2,000 positions, including 1,100 in Switzerland, in the next three to five years.

A further 900 positions will be eliminated in the United States.

The news came as Novartis announced its third quarter results on Tuesday, posting a seven per cent increase in net profit and earnings of $2.49 billion (SFr2.19 billion), up from $2.32 billion for the same period last year.

Sales grew 18 per cent to $14.8 billion in the third quarter, with new products contributing about a quarter, or $3.6 billion. The purchase of Alcon and the relative weakness of the US dollar also added to Novartis’ strong sales, a company statement said.

Along with the 2,000 job losses, the Basel-based company said 700 new positions would be created in low-cost countries, resulting in estimated annual savings of over $200 million.

The Novartis restructuring will overlap with the one under way at fellow Basel-based pharmaceutical giant Roche, which announced 4,800 job cuts worldwide last November.