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.

This content was published on October 25, 2011 minutes and agencies

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.

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