Novartis Reducing Costs by $1.6 Billion

Novartis has launched a new initiative aimed at streamlining operations during a lull in growth to prepare for an anticipated surge in the second half of 2008. The initiative is expected to save the company $1.6 billion by 2010.

The company said it plans to cut approximately 2,500 full-time positions worldwide, or roughly 2.5 percent of its staff. Many reductions will be handled through normal fluctuation in staffing levels, which traditionally averages 8 percent of the group’s annual work force.

As part of the initiative, the company is looking at new marketing approaches. The Novartis Institutes for BioMedical Research will focus on disease areas with significant new opportunities. The company also will form a new cross-divisional operation to accelerate growth in emerging markets, including Northern and sub-Saharan Africa, central Asia and parts of Southeast Asia.