Novartis plans to cut up to 550 jobs at Swiss facility

Audio By Carbonatix

Enlarge

ZURICH (Reuters) -Novartis said on Tuesday that it plans to cut up to 550 full-time jobs by the end of 2027 at one of the Swiss pharmaceutical firm’s sites in Switzerland, stressing the step was not linked to its expansion in the United States.

Novartis said the cuts were part of plans to end production of tablets and capsules and packaging of sterile medicines at its plant in Stein in northern Switzerland.

The company said it also plans to invest $80 million in its production at its Schweizerhalle site on the edge of Basel and create around 80 new positions there by the end of 2028.

Novartis and its rival Roche are two of the top Swiss investors in the United States.

Both said they would invest billions of dollars there in the coming years as Swiss firms pledge to expand in the United States under duress from U.S. President Donald Trump, who earlier this year imposed 39% tariffs on Switzerland.

Earlier this month, the U.S. and Swiss governments announced a deal to cut the tariffs to 15%, though the lower duties have yet to be implemented.

Novartis and Roche have so far not faced the tariffs due to their investments.

Steffen Lang, president of operations at Novartis, said the latest announcement was not connected with pledges the company made in April to expand its operations in the United States.

“We continue to invest in Switzerland, and our sites here still produce for over 120 countries,” he said in a statement.

(Writing by Dave GrahamEditing by Ludwig Burger and Miranda Murray)