The German paper Sonntag was reporting over the weekend that Novartis would soon be engaging in its own large job cutting program similar to that announced by Roche last week. "Not so!" indicated a Novartis spokeman, saying the company had no plans for a program similar to Roche's.
Novartis did allow that its long-term strategy will incorporate cost cutting in manufacturing, marketing and sales, and procurement to increase profitability in the wake of its multi-billion dollar drug, Diovan, coming off patent. The Swiss Giant remained mum on any job cuts.
Well - how do you really reduce costs dramatically in sales & marketing, manufacturing and procurement in the short term without job cuts? The cuts will be announced soon no doubt -- and then it will be "No Soup for You".
Posted by Bruce Lehr November 22nd 2010.
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