Novartis (NYSE:NVS) announced on Tuesday that the company plans on laying off at least 2,000 workers as part of a broader global restructuring plan.
The pharmaceutical giant said that the CEO ordered the move as the Swiss company hopes to turn its focus towards manufacturing and distributing higher-value drugs. The company added that most of the layoffs will affect those working in the company’s home market in Switzerland.
All in all, Novartis will eliminate a net of 1,000 production jobs as the pharma company will also add 450 new positions in its home market, as well as 700 positions in its business services. The company added that these layoffs will take place through 2022.
The pharmaceutical giant currently has 12,800 employees, which means that it will lose more than 7% of its workforce if it gets rid of more than 2,000 jobs and adds about 1,150 new ones. Novartis added that it will cut about 400 jobs at a plant in the UK, although the company says that this move is completely unrelated to Great Britain’s decision to depart from the European Union in 2019.
The company previously said that it would be cutting jobs in Japan, the U.S. and various other countries around the globe.
NVS stock was gaining about 0.7% during regular trading hours on Tuesday. The stock surged an additional 0.2% after the bell.