EMCC European Monitoring Centre on Change

Novartis

Company/Organisation:
Novartis

Geographic Location

Country: Spain

Company

Sector: Manufacturing
Manufacture of pharmaceuticals, medicinal chemical and botanical products
21.20 - Manufacture of pharmaceutical preparations
Number Employed: 2100

Employment Effects

Announcement Date: 14-10-2022
Planned Job Reductions min: 220
Planned Job Reductions max: 240
Type of Restructuring: Internal restructuring
Employment Effect Start: 14-10-2022
Direct Dismissals: 220

Additional Information

The Swiss multinational pharmaceutical company Novartis has announced a redundancy programme (ERE) for organisational reasons that will affect between 220 and 240 people in Spain, where it has around 2,100 workers, both in the factory and corporate. The company has stated the job reductions will affect operational, field and office positions, however production plants will not be involved. 

The redundancies are part of the transformation plan for the business which the company is carrying out, involving the global simplification of its operating model to focus on innovation and productivity. This will also include the departure of some 8,000 workers worldwide. The redundancy plan was announced to the workers on 14 October, and from that point onwards the process has been initiated to set up the negotiating table and begin the procedures for the departure of those affected by the plan.

Over the past four years, Novartis has evolved from a healthcare conglomerate, with high operating expenses limiting the ability to invest in core activities such as R&D and licensing, to an innovative drug company. The company has emphasised that the resulting new structure will be leaner and simpler, but involves the elimination of certain positions across the organisation. Novartis currently has five production plants in Spain, in Palafolls, Les Franqueses and Esplugues in Barcelona, one in Murcia and another in Zaragoza, after selling its plants in Barberà del Vallès and El Masnou in 2020.

Previous factsheets for Novartis' Spanish operations have been recorded in the ERM database in 2022, with an announced creation of 124 jobs (Novartis-2022-ES).

Updated 29/11/2022

The Spanish trade union Comisiones Obreras (CCOO) has managed to reduce the number of dismissals announced by Swiss pharmaceutical company Novartis in Spain through an ERE from 240 to 117 people. In this agreement, it has been agreed to compensate a dismissal of 59 days per year worked with a maximum of 42 monthly payments. In addition, people between 55 and 57 years of age with 10 or more years of service will be guaranteed 70% of their gross salary until the age of 63. From the age of 58 with 15 years of service or more, 75% of the salary is guaranteed. For those aged 63 or over, they will receive a severance payment of 20 days per year with a maximum of 12 monthly payments plus a linear amount of 12,000 euros. All this with the guarantee of a 2% annual revaluation. It is expected that the agreement will be ratified on 1 December 2022.

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