Pharmaceutical company Novartis has announced it will cut approximately 400 jobs at its global service centre in Dublin by the end of 2024

The company, which cut 320 jobs at its manufacturing facility in Ringaskiddy, Co Cork in 2019, said the decision to shed jobs at the site in Elm Park, Dublin 4 was "strategic" and the result of an ongoing review of its operations globally.

There are currently c.1,000 employed at the centre.

Novartis added that the facility would continue to play an important role going forward with a focus on commercial and scientific operations.

"Ireland is an important location for Novartis due to its unique eco-system of highly educated, skilled and adaptable workforce which is critical in the knowledge-intensive, high-science, pharma sector," Novartis said in a statement

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"Novartis recognises that announcing such an intention has a significant impact on people and creates uncertainty. Novartis is committed to keeping associates informed in as transparent and timely a manner, as possible."

A consultation process with employee representatives will take place in due course, the company added.

Novartis announced in April that it would undergo a global organisational restructuring to "accelerate growth, strengthen pipeline and increase productivity" in the areas of cardiovascular, immunology, neuroscience, solid tumours and haematology.

As a result of the restructuring, Novartis plans to reduce its global workforce from 108,000 to around 100,000. The company currently employs around 1,500 people in Ireland, including 500 in Ringaskiddy.

Novartis has an innovative medicines division (pharmaceuticals) and gene therapies centre in Dublin in addition to the affected global service centre.

Reacting to the announcement, Tánaiste and Minister for Enterprise Leo Varadkar said the government would make all necessary state assistance available to workers and provide education and training opportunities.

“I extend my sympathies to all Novartis employees who have been affected by today’s announcement. Although the jobs losses are not unexpected, I know it will come as a major blow to workers and their families," he stated.

“I’m glad to see that Novartis has reiterated its commitment to Ireland, recognising the high quality of our workforce and that it will keep employees informed in as transparent and timely a manner as possible. 

“I have also asked my officials and IDA Ireland to keep me informed of developments, especially regarding precisely how many roles are at risk before the end of 2024 and what the redundancy package will be."

The firm recorded net sales of $12.8bn in the second quarter, a decline of 1% year-on-year, while operating income fell by 36% to $2.3bn and earnings per share fell 40% to 77 cent.

(Pic: Taljat David/Shutterstock)