Novartis Cutting 427 Jobs at NJ Headquarters
Novartis Pharmaceuticals is eliminating 427 positions at its East Hanover, New Jersey headquarters by the end of October. The Swiss drugmaker filed official notification with the state this month, continuing a trend of job cuts that has affected hundreds of New Jersey pharmaceutical workers in recent years.
When will these layoffs happen?
The cuts will be implemented in phases between June 13 and October 24, according to the Worker Adjustment and Retraining Notification filed with state officials. This formal notice is required by federal law when large employers plan significant workforce reductions.
These new cuts come just months after Novartis announced another round of 235 layoffs at the same facility late last year. The company has been steadily reducing its New Jersey workforce as part of a global restructuring plan.
Why is Novartis cutting these jobs?
According to company spokesman Michael Meo, these changes are tied to evolving business needs and upcoming changes to the company’s product portfolio.
“Novartis continually assesses opportunities to drive growth and sustainable performance and create the greatest potential impact for patients and customers,” Meo said in a statement to NJ.com.
One major factor driving these changes is the upcoming patent expiration for Entresto, the company’s heart failure medication. When the patent expires in July, other manufacturers will be able to produce generic versions, potentially reducing Novartis’s market share and revenue.
At the same time, the company reports increasing sales of its cholesterol drug Leqvio and is preparing to launch new products.
How is the company handling the transition?
Novartis says it will encourage affected employees to apply for other positions within the company, though it’s unclear how many might find new roles internally.
“We are committed to treating our people with fairness and respect,” Meo stated.
The company plans to implement its new organizational structure on April 1, more than two months before the first layoffs begin. This restructuring focuses primarily on the cardiovascular division.
“To support this future portfolio, we have made changes to our CV (cardiovascular) commercialization model that optimize our support for patients throughout their treatment journey and simplify and strengthen how we engage with our customers,” Meo explained to Patch.com.
How many people will still work at Novartis in New Jersey?
After these cuts, Novartis will still employ approximately 3,000 people in New Jersey. Despite the ongoing reductions, it remains one of the larger pharmaceutical employers in the state.
The East Hanover facility has served as the company’s U.S. headquarters for decades, though its workforce has been steadily declining over the past few years as part of the company’s plan to cut 7 percent of its global workforce.
What are WARN notices and why do they matter?
The federal WARN Act requires companies with 100 or more full-time employees to provide at least 60 days’ notice when laying off 50 or more workers at a single location. This requirement gives employees time to prepare for job transitions and helps communities anticipate economic impacts.
For the 427 affected employees, this advance notice provides some time to update resumes, start job searches, and consider their options before their positions are eliminated.
However, these official notices don’t provide complete information about a company’s workforce changes. They don’t include information about the percentage of workers being cut or whether smaller job reductions are happening at other locations.
As pharmaceutical restructuring continues across New Jersey, these formal notices provide just one window into the ongoing changes reshaping one of the state’s key industries.
