Novartis announced that it will eliminate up to 550 full‑time positions at its Stein manufacturing site near Basel, Switzerland, with the reductions scheduled to take effect by the end of 2027. The announcement was made on November 25, 2025 and represents the company’s first major workforce change reported in the past week.
The cuts are part of a broader effort to modernize Swiss operations and focus resources on high‑value, automated production of cell therapies and small‑molecule siRNA products. By phasing out older tablet and capsule manufacturing lines, Novartis aims to reduce operating costs and increase flexibility in a rapidly evolving therapeutic landscape.
While the Stein facility will see significant workforce reductions, the company is simultaneously investing in its Schweizerhalle site, where it plans to expand capacity for advanced therapies. The scale of the changes at Stein contrasts with the growth at Schweizerhalle, underscoring a strategic shift toward specialized, high‑margin production in Switzerland.
Affected employees will receive a comprehensive social plan that includes early‑retirement options, retraining programs, and outplacement services. The plan is designed to support workers through the transition while preserving the company’s long‑term talent pipeline.
Novartis’ Q3 2025 results provide context for the restructuring. Net sales rose 7 % to $13.91 billion, driven by strong demand for priority brands such as Kisqali, Kesimpta, Pluvicto, and Scemblix. Core operating income grew 7 % to $10.28 billion, maintaining a 39.3 % margin. The company reaffirmed its full‑year 2025 guidance, projecting high‑single‑digit sales growth and core operating income expansion, indicating confidence in its cost‑control and growth strategy.
The announcement was met with a positive market reaction, largely driven by the FDA approval of Itvisma, a gene therapy for spinal muscular atrophy, and a Bank of America upgrade to a “Buy” rating. Investors viewed the restructuring as a prudent cost‑containment measure that complements the company’s strong financial performance and growth prospects.
Steffen Lang, Novartis’ president of operations, said, “To maintain competitive production in Switzerland, we must focus on investing in innovative manufacturing technologies and a high degree of automation. With the planned adjustments, we are further developing both sites, Schweizerhalle and Stein, as centers of excellence for innovative production.”
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