Novartis announced on Tuesday the elimination of 550 jobs in Switzerland by the end of 2027 as part of the modernization of a factory, a move condemned by the Unia union, which is concerned about the industrial fabric of the Alpine country.
In a statement, Novartis indicated that it wished to strengthen the efficiency and automation of production at its plant in Stein, about forty kilometers east of Basel, in northern Switzerland.
The pharmaceutical giant plans to cease manufacturing tablets and capsules there in order to focus on new, "more complex" treatments, the statement said.
The Stein plant is to be refocused on personalized cell therapies and become its center of expertise for sterile dosage forms, says Novartis, which plans to invest $26 million (€22.5 million) there.
It also plans to invest $80 million in another factory in Switzerland, near Basel, to produce small interfering RNA (SRNA) therapies, innovative treatments used for cardiovascular, kidney, and metabolic diseases. At this factory, it expects to create approximately 80 jobs by the end of 2028.
"To maintain competitive production, we must focus on innovative production technologies and invest in a high degree of automation," said Steffen Lang, who heads Novartis' operational activities, as quoted in the press release.
These changes, which are expected to result in the elimination of approximately 550 positions, are subject to an information and consultation process, insists the group, which is committed to supporting the employees concerned.
A social plan has been extended until 2028. Novartis mentions, among other things, early retirements.
– “Incomprehensible” according to the Unia union –
The Unia union considers this decision "totally incomprehensible" in view of the group's figures, which show that Novaris "is doing well".
"The Stein plant will cease producing tablets and capsules" while "at the same time, Novartis is expanding its production sites in the United States," the union reacted in a statement.
"Unia condemns the job cuts and the weakening of the Swiss industrial sector," adds the union, which "demands investments to maintain jobs in Switzerland."
Based in Basel, Novartis generated $50.3 billion in revenue in 2024. At the end of the fiscal year, it employed 78,310 people, including 10,000 in Switzerland, where about half work in research and development.
This announcement comes amid questions and criticisms about the scope of the recent draft agreement with Washington to reduce tariffs on Swiss products, bringing them down to 15%, compared to 39% since August.
Among the points of contention are the $200 billion in investments that Swiss companies are expected to make in the United States, one of the questions raised in the Swiss press being whether or not these investments will lead to relocations.
Medicines are among the products that are exempt from customs duties, but the fate of pharmaceutical products in the United States is closely monitored given their weight in the trade balance.
Across all countries, the chemical and pharmaceutical sector alone accounts for more than half of the Alpine country's merchandise exports.
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