Dr Reddy’s Laboratories is cutting its workforce by 25%, targeting high-salaried employees and offering voluntary retirement to those aged 50-55 in R&D to boost efficiency.
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Pharmaceutical giant Dr Reddy’s Laboratories has made a substantial downsizing, aiming to reduce its workforce costs by nearly 25 percent, as reported by Business Standard. Several senior executives, including many who earn over Rs 1 crore annually, have been asked to resign, the report mentioned.
Employees aged between 50-55 years in the company’s research & development (R&D) division have been offered voluntary retirement, according to the BS report. Additionally, numerous high-salaried employees across various departments have already been asked to leave.
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Dr Reddy’s Laboratories Strategic Actions
Analysts cited in the report mentioned that this move comes as Dr Reddy’s Laboratories continues to implement strategic actions to enhance operational efficiencies. Recently, the pharma company has ventured into nutraceuticals through a joint venture with Nestle and has also entered the digital therapeutics space, launching several new products. To support these new ventures, the company has hired extensively in recent years. If these new initiatives do not perform as expected, the company may need to downsize its teams, an analyst noted.
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The therapeutics division might be completely shut down, while the nutraceuticals arm could see some downsizing. This could lead to 300-400 employees being let go, a source told Business Standard.
Significantly, the company reported consolidated employee benefits expenses of Rs 1,367 crore in Q3 FY25, marking a nearly 7 percent increase from the Rs 1,276 crore reported in Q3 FY24.
