New Delhi, April 14: Pharmaceutical major Dr Reddy’s Laboratories is reportedly implementing significant workforce cost-reduction measures, including a nearly 25% cut in workforce expenses and layoffs targeting high-salaried employees earning over ₹1 crore annually, according to media reports.
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The company has also offered voluntary retirement packages to employees aged between 50 and 55 within its Research and Development (R&D) division. Reports indicate that several senior-level employees across departments have already been asked to step down as part of the restructuring process.
These actions are part of Dr Reddy’s broader strategy to enhance operational efficiency amid challenges arising from recent business ventures. The company’s expansion into nutraceuticals through a joint venture with Nestlé, its entry into digital therapeutics, and the rollout of new products may not have met performance expectations, prompting the current cost optimization drive.
Sources suggest that around 300–400 employees could be affected by the restructuring. There are also indications of a potential shutdown of the therapeutics division and a scale-down of operations in the nutraceuticals segment.
The estimated 25% reduction in workforce-related expenses could translate to annual savings of approximately ₹1,300 crore.
