Novartis Announces Further Layoffs Amid Ongoing Efficiency Drive

Novartis, the Swiss pharmaceutical giant, continues to reshape its organizational structure with a new round of layoffs at its U.S. headquarters in East Hanover, New Jersey. This move is part of the company's ongoing efforts to streamline operations and boost efficiency in an ever-changing pharmaceutical landscape.

Latest Workforce Reduction

According to a recent Worker Adjustment and Retraining Notification (WARN) notice, Novartis plans to lay off 58 employees from its U.S. medical affairs organization. This decision comes as the company evaluates opportunities to enhance processes, increase efficiencies, and ensure optimal resource allocation.

A Novartis spokesperson stated, "As the external environment continues to change, our operations will also evolve to ensure we are best positioned to deliver our innovative medicines to patients in need."

Pattern of Organizational Changes

This latest round of job cuts is not an isolated incident but part of a broader trend of organizational adjustments at Novartis:

• In May 2025, the company announced 426 layoffs at its U.S. headquarters, primarily affecting its cardiovascular commercial structure. This move was in response to the anticipated loss of exclusivity for Entresto and the growth of newer heart drugs.

• November 2024 saw 139 layoffs targeting field sales associates for the immunology drug Xolair and the oncology combo of Tafinlar and Mekinist.

• In 2022, Novartis adopted a new organizational structure that integrated its oncology and pharmaceuticals business units.

Financial Targets and Performance

Despite these workforce reductions, Novartis maintains ambitious financial goals. The company is targeting a core operating profit margin of above 40% of net sales by 2027. In the first half of 2025, Novartis achieved a 42.1% core operating profit margin, representing a 3.1 percentage point increase compared to the same period last year.

These organizational changes and efficiency drives appear to be yielding positive financial results, as Novartis continues to position itself as a leader in the pharmaceutical industry. However, the impact on employees and the long-term effects on the company's innovation capabilities remain to be seen.