550 Layoffs ;Novartis has outlined several updates to its manufacturing network that include job reductions in Switzerland and expanded investment in the United States. The announcement follows the company’s recent disclosure of plans to create a new manufacturing hub in North Carolina that would add 700 positions.
In northern Switzerland, Novartis plans to invest $26 million in an automation overhaul at its Stein production site. The company said the modernization effort will increase productivity. As part of the changes, Novartis will discontinue the manufacturing and packaging of tablets and capsules at Stein by the end of 2027, a move that will reduce the workforce by 550 roles at the location.
Alongside the changes in Stein, Novartis plans to expand capabilities at its Schweizerhalle site on the outskirts of Basel. The company said it will invest $80 million to increase siRNA production, which is expected to create about 80 additional positions by the end of 2028.
Steffen Lang, president of operations at Novartis, said in a statement, “To maintain competitive production in Switzerland, we must focus on investing in innovative manufacturing technologies and a high degree of automation.” He also said in paraphrased remarks that the planned adjustments would further develop the Stein and Schweizerhalle locations as centers of excellence for innovative production.
Novartis did not immediately respond to questions about whether its actions in Switzerland were connected to its recent expansion plans in the United States.
In the U.S., the company recently announced that it would build a facility in Morrisville, North Carolina, that will focus on producing and packaging tablets and capsules. Novartis also said it would construct two additional sites near its gene therapy manufacturing facility in Durham.
According to the company, these facilities will concentrate on biologics production and sterile packaging and are expected to begin operating in the 2027–28 period. The North Carolina investments total $771 million and will enable end-to-end production of key medicines in the United States. These initiatives are part of Novartis’ previously stated commitment to invest $23 billion in U.S. facilities over the next five years.
That pledge, announced in April, came as several Swiss pharmaceutical companies outlined major investment plans in the United States in the context of tariff actions taken earlier this year by President Donald Trump.
The U.S. imposed 39% tariffs on Switzerland, and although the two governments later announced an agreement to reduce the duty to 15%, the lower rate has not yet been implemented. Novartis and Roche have not faced the tariffs due to their current investment activity in the United States.
Novartis said that its Swiss job reductions are not related to its expansion efforts in the United States. Lang stated that the announcement is not connected to the pledges made in April regarding U.S. operations. He also said elsewhere that Novartis continues to invest in Switzerland and that its sites in the country supply products to more than 120 markets.
Novartis has announced a significant restructuring plan that will see 550 layoffs in Switzerland, marking a major shift in the company’s global operations. The Novo 550 Layoffs are part of a broader strategy to strengthen Novartis’ presence in the U.S. manufacturing sector, as the company seeks to optimize production and streamline costs.
Employees affected by the Novo 550 Layoffs will receive support, including severance packages and career transition assistance. While the layoffs are a setback for the Swiss workforce, Novartis emphasizes that these changes are necessary for long-term growth.
Novartis Plans 550 Layoffs in Switzerland Amid U.S. Expansion
Novartis has announced plans to cut 550 jobs in Switzerland as part of a major restructuring initiative. The Novo 550 Layoffs are aimed at optimizing operations in Europe while expanding the company’s manufacturing presence in the United States.
